A waste processing plant in Newcastle, designed for modern materials recycling and waste autoclaving, had planning consent for two pyrolysis treatment plants to generate electricity.
After undertaking due diligence and examining the market potential, we arranged a secured loan to the borrower to expand and develop the pyrolysis plants.
We arranged a loan facility in November 2015. The loan agreement included a first ranking debenture over the borrower, including the property, the plant and the machinery. There were also cross-guarantees from associated and parent companies of the borrower, similar debentures, share charges and a personal guarantee.
We arranged a maximum loan of £7m over a six-month term with a basic interest rate of 1.75% per month. The loan had an optional six-month term extension but the borrower chose not to exercise this and repaid the loan in full in May 2016.