Further investment in Clyde
Greencoat UK Wind PLC ("UKW") is pleased to announce that it has entered into an agreement to make a further investment in Clyde Windfarm (Scotland) Limited ("Clyde"), together with GLIL Corporate Holdings Limited ("GLIL"), the infrastructure investment vehicle of certain local authority pension funds.
As agreed at acquisition in March 2016, the Clyde Extension construction indemnity provided by SSE will fall away on the Commercial Operation Date of Clyde Extension (expected to occur in late August 2017) and, five business days thereafter, UKW and GLIL's shareholding in Clyde will be diluted from 49.9% (UKW 28.2%) to 30% (UKW 17%). On the dilution date, UKW and GLIL will acquire an additional 5% (UKW 2.8%) of Clyde for a consideration of £67.8 million (UKW £38.3 million).
UKW is also pleased to announce that UKW and GLIL have entered into a call option to buy a further 14.9% (UKW 8.4%) of Clyde for a consideration of £202.2 million (UKW £114.2 million). The option is exercisable between 1 April 2018 and 30 June 2018, and is exercisable by UKW and GLIL or by either one of them.
Clyde is located in South Lanarkshire and consists of the Clyde North, Clyde South and Clyde Central wind farms, with a combined generating capacity of 350 MW. Clyde North consists of 47 Siemens 2.3 MW turbines and has a generating capacity of 108MW, while Clyde Central and Clyde South consist of 49 turbines (113 MW) and 56 turbines (129 MW) respectively. Clyde Extension consists of 54 Siemens 3.2 MW turbines with a total capacity of 173 MW.
Tim Ingram, Chairman of UKW, commented: "We are delighted to make a further investment in Clyde, one of the largest series of onshore wind farms in the UK, and also to enter into an option to increase our investment again next year."
Stephen Lilley of Greencoat Capital added: "We've been really pleased with the performance of our Clyde investment over the last 15 months and have watched with interest SSE's build-out of the extension. We look forward to continuing our partnership with SSE and GLIL".
The acquisition, which is expected to complete in late August 2017, will be funded by UKW's revolving credit facility. Following completion of the acquisition, at £213 million, UKW's total outstanding debt is expected to be approximately 21% of Gross Asset Value (leverage limit 40%).
For further information, please contact:
Greencoat UK Wind PLC 020 7832 9400
Stephen Lilley
Laurence Fumagalli
Tom Rayner
Tulchan 020 7353 4200
Peter Hewer
Notes to Editors:
Greencoat UK Wind PLC is the leading listed renewable infrastructure fund, invested in 21 operating UK wind farms with net generating capacity of 457MW (including dilution to 17% and subsequent acquisition of 2.8% of Clyde). The Company's aim is to provide investors with an annual dividend that increases in line with RPI inflation (6.49p for 2017) while preserving the capital value of its investment portfolio in the long term on a real basis through reinvestment of excess cash flow and the prudent use of portfolio gearing.
UKW is managed by an experienced team at Greencoat Capital LLP, a leading European renewable investment manager with c. £2 billion of assets under management across a number of funds in wind and solar infrastructure and private equity, and is overseen by a strong and experienced independent board.
UKW is incorporated in England and Wales and is a UK Investment Trust.
For more information about UKW, please visit http://www.greencoat-ukwind.com.
For more information about Greencoat Capital LLP, please visit http://www.greencoat-capital.com.
