What does the company do?
Atlantis Ocean Energy is part of SIMEC Atlantis Energy, a developer, owner and operator of sustainable energy projects with a portfolio in various stages of development.
The company's heritage is in tidal power generation where it forged a reputation as a world leader in the development and the delivery of commercial-scale tidal power projects. The company's portfolio of projects includes the MeyGen tidal project in the Pentland Firth off the coast of Scotland, with the first phase of the project consisting of four 1.5MW tidal turbines operating since March 2018.
SIMEC Atlantis Energy is also the owner of the land, grid connection, infrastructure and existing disused power station at the Uskmouth site in Newport, South Wales. The company is working to transition the Uskmouth site into a sustainable energy park, which includes plans to deliver Battery Energy Storage Systems.
SIMEC Atlantis Energy is AIM listed and you can find the latest news about the company on its website here.
Why did the company raise money?
SIMEC Atlantis Energy has previously raised money on Abundance across three investments:
This investment provided Atlantis with capital to produce the next generation of subsea technology and progress more tidal power opportunities in its portfolio, including the development of the next phase of MeyGen.
How does the company expect to repay the investment?
SIMEC Atlantis Energy expects to repay the investment using either its revenues (for example, from power generation or selling interests in projects it owns, such as its battery projects) or refinancing the debt by raising money from other sources.
In the event that Atlantis Ocean Energy, the issuer of the investment, is unable to make the payments of interest or capital repayment due to investors, SIMEC Atlantis Energy (as the parent company of the group) is obligated to make the payments itself.
How is the company making an impact?
The company is delivering new forms of sustainable power generation, while supporting the integration of intermittent renewable energy into the electricity supply through battery storage solutions.
Extensions of the investment
The maturity date for this investment was originally 30 June 2022 but has been extended to 2029. The company has requested a number of extensions of the investment to give it more time to receive the income it needs to repay the investment. The extension proposals were accepted by the required number of investors which means the maturity date is now 30 June 2029. The company is due to begin partially repaying the investment in 2027, with full repayment by 2029. The company has the option to repay earlier if it can.
Key terms
Interest is paid every 6 months. The interest rate is currently 10% and will rise to 11% in 2027, 12% in 2028 and 13% in 2029. Capital is repaid in partial instalments, starting in 2027, with the majority repaid on the maturity date.
The investment can be repaid early at any point subject to providing notice to investors and paying interest due up to the point of repayment.
See the Debenture Deed for details of all circumstances in which the option for early repayment may be exercised.Documents
Payment schedule
This table gives a breakdown of what is due to be paid back on this investment, based on an example investment of £1,000.
| Payment date | Capital repayment | Interest | Total |
|---|---|---|---|
| 2 January 2018 | £0.00 | £33.53 | £33.53 |
| 2 July 2018 | £0.00 | £39.67 | £39.67 |
| 28 December 2018 | £0.00 | £40.32 | £40.32 |
| 1 July 2019 | £0.00 | £39.67 | £39.67 |
| 31 December 2019 | £0.00 | £40.32 | £40.32 |
| 30 June 2020 | £0.00 | £39.89 | £39.89 |
| 31 December 2020 | £0.00 | £40.32 | £40.32 |
| 30 June 2021 | £0.00 | £39.67 | £39.67 |
| 31 December 2021 | £0.00 | £40.32 | £40.32 |
| 31 August 2022 | £0.00 | £39.97 | £39.97 |
| 30 December 2022 | £0.00 | £40.32 | £40.32 |
| 30 June 2023 | £0.00 | £39.67 | £39.67 |
| 2 January 2024 | £0.00 | £50.41 | £50.41 |
| 1 July 2024 | £0.00 | £49.86 | £49.86 |
| 31 December 2024 | £0.00 | £50.41 | £50.41 |
| 30 June 2025 | £0.00 | £49.58 | £49.58 |
| 31 December 2025 | £82.83 | £50.41 | £133.24 |
| 30 June 2026 | £0.00 | £45.48 | £45.48 |
| 31 December 2026 | £165.66 | £46.23 | £211.89 |
| 30 June 2027 | £0.00 | £40.99 | £40.99 |
| 31 December 2027 | £248.48 | £41.67 | £290.15 |
| 30 June 2028 | £0.00 | £30.09 | £30.09 |
| 2 January 2029 | £0.00 | £30.42 | £30.42 |
| 2 July 2029 | £503.03 | £32.42 | £535.45 |
| Total | £1,000.00 | £991.64 | £1,991.64 |