completion of ofto refinancing AND RESTRUCTURE
30 September 2019
International Public Partnerships Limited, the listed infrastructure investment company ('INPP' or the 'Company'), has successfully completed an innovative refinancing and restructuring of its offshore transmission ('OFTO') portfolio.
The Company has repaid the original bank debt secured against the original three OFTOs it invested into - being the Barrow, Gunfleet Sands and Robin Rigg OFTOs. The transaction takes advantage of current favourable conditions in the debt markets and further de-risks the portfolio by reducing financial leverage on these investments by c.50% (compared to the level at financial close). This has been achieved through a combination of a new long-term bank debt and an additional c.£70m senior debt investment made by the Company.
The combination of the low cost of the new bank debt, together with the ability to release certain reserves and achieve other efficiencies following the repayment of the existing bank debt, allows the new senior debt investment made by the Company to be attractively priced and generate returns accretive to the Company's portfolio. At the same time the transaction provides the Company with additional financial and operational flexibility notably by retaining the ability to re-gear in the future.
The commercial terms of the new bank debt are significantly more attractive than the terms of the original loans as a consequence of favourable current market conditions, the debt market's familiarity with the sector and the strong historic performance of the Company's OFTO portfolio.
The Barrow, Gunfleet Sands and Robin Rigg OFTOs were the first three of any OFTOs to be invested into and were the result of the Company's early anticipation of the development of this attractive sub-class of infrastructure. The terms of the third-party debt originally secured against these first three OFTOs reflected the then immaturity of the asset class. Performance of the assets has been strong since their original acquisition, with availability levels significantly in excess of Ofgem's target.
In total, the Company owns seven of the seventeen UK OFTOs which have reached financial close. The Company's OFTO portfolio connects 1.5GW of renewable energy to the UK's grid, which is sufficient to power 1.3 million UK homes. In August, the Company was appointed preferred bidder for Rampion OFTO, which will be the eighth OFTO in the portfolio once it reaches financial close.
Following the recent capital raise conducted in September 2019, the Company's £400 million revolving credit facility is currently drawn by £102.9 million. This means the Company is well positioned to support its diverse pipeline of high-quality assets across all markets in which INPP invests.
ENDS.
For further information:
Erica Sibree/Amy Joslin +44 (0)20 7939 0558/0587
Amber Fund Management Limited
Hugh Jonathan +44 (0)20 7260 1263
Numis Securities
Ed Berry/Mitch Barltrop +44 (0) 20 3727 1046/1039
FTI Consulting
About International Public Partnerships ('INPP'):
INPP is a listed infrastructure investment company that invests in global public infrastructure projects and businesses, which meets societal and environmental needs, both now, and into the future.
INPP is a responsible, long-term investor in 130 infrastructure projects and businesses. The portfolio consists of utility and transmission, transport, education, health, justice and digital infrastructure projects and businesses, in the UK, Europe, Australia and North America. INPP seeks to provide its shareholders with both a long-term yield and capital growth.
Amber Infrastructure Group ('Amber') is the Investment Adviser to INPP and consists of over 125 staff who are responsible for the management of, advice on and origination of infrastructure investments.
Visit the INPP website at www.internationalpublicpartnerships.com for more information.
Important information
This announcement contains information that is inside information for the purposes of the Market Abuse Regulation (EU) No. 596/2014.
This announcement is an advertisement. It does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any shares in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducement to enter into, any contract therefor.
Forward-looking statements are subject to risks and uncertainties and accordingly the Company's actual future financial results and operational performance may differ materially from the results and performance expressed in, or implied by, the statements. These forward-looking statements speak only as at the date of this announcement. The Company, Amber and Numis Securities expressly disclaim any obligation or undertaking to update or revise any forward-looking statements contained herein to reflect actual results or any change in the assumptions, conditions or circumstances on which any such statements are based unless required to do so by the Financial Services and Markets Act 2000, the Prospectus Rules of the Financial Conduct Authority or other applicable laws, regulations or rules.
