5th Aug 2019 11:53
(Alliance News) - Foresight Solar Fund Ltd on Monday said it has refinanced GBP245 million of debt for a 28 asset UK portfolio.
The portfolio represents a 321 megawatt installed capacity and has been refinanced with a GBP170 million term loan facility plus GBP65 million revolving credit facility and GBP10 million debt service reserve facility.
The term loan expired march 2036, jointly provided by Sumitomo Mitsui Banking Corp and Landesbank Hessen-Thuringen Girozentrale. All-in annual cost for the term loan is around 230 base percentage points and it will be used partly to refinance Foresights's asset-level debt facilities set to expire next month.
The revolving credit facility, meanwhile, has only a three-year term and is provided by National Westminster Bank PLC to replace an existing facility of the same amount from 2017.
With the refinancing complete, solar asset investor Foresight's total debt stands at GBP511.3 million, 46% of its gross asset value and that of its subsidiaries. Outstanding long-term debt is GBP406.3 million excluding revolving credit facilities.
Chair Alex Ohlsson said: "This refinancing delivers significant value for Foresight Solar Fund as a result of a reduction in the annual cost of the new cross-collateralised term loan facility against the previous asset level facilities.
"In addition, the refinancing of the RCF removes any short-term refinancing risk across the company's portfolio and allows the company to adopt a more flexible approach to new investment opportunities in both the short and medium term."
Shares in Foresight were up 0.5% at 115.60 pence on Monday in London shortly before mid-day.
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Foresight Solar Fund