Saughter and May advised Drax on the refinancing of Pinnacle Renewable Energy Inc.

Saughter and May advised Drax Group plc (“Drax”) on the refinancing of the Canadian Dollar facilities it acquired as part of its acquisition of Pinnacle Renewable Energy Inc. (“Pinnacle”) in April 2021. Saughter and May also advised Drax on the acquisition of Pinnacle.

The new C$300 million term facility (the “Facility”) matures in 2024, with an option to extend by two years. The Facility has a customary margin grid referenced over the Canadian Dollar Offered Rate.

The Facility includes an embedded ESG component which adjusts the margin based on Drax’s carbon intensity, measured against an annual benchmark.

Saughter and May worked as an integrated team with Osler, Hoskin & Harcourt LLP acting as Canadian counsel, Cravath, Swaine & Moore LLP acting as US counsel, Pinsent Masons LLP acting as Scots counsel and Maples Group acting as Cayman counsel.