23rd Jun 2023 09:00
(Alliance News) - Gore Street Energy Storage Fund PLC said on Friday that it had upsized its existing revolving credit facility with Santander UK PLC to GBP50 million from GBP15 million.
The London-based international investment fund said it had secured GBP35 million of incremental debt arranged and syndicated between Santander UK and Banco Santander SA.
Pricing for its GBP50 million facility remains unchanged at 300 basis points over the SONIA interest rate benchmark.
Gore Street Energy Storage Fund said the four-year term of the facility has been extended to 2027, providing the company with more financial flexibility that it will use to develop its construction portfolio and provide headroom to explore future pipeline options.
The facility with Santander includes an accordion option to increase beyond GBP50 million to up to 30% of gross asset value.
Director, Specialised & Project Finance of Santander UK Ioana Bozan said: "We are delighted to continue supporting Gore Street Energy Fund PLC's acquisition pipeline and enabling the transition to a low carbon future with an upsized GBP50 million debt facility."
Gore Street Energy Fund also said it was exploring financing options for its California-based Big Rock asset.
Big Rock is an energy storage facility located in Imperial Country, California, that Gore Street Energy Storage purchased for USD110 million in February.
The company said that the asset's revenue profile will be underpinned by a long-term fixed contract which will account for up to 40% of project revenue and will make it an attractive candidate to introduce project-level debt at competitive pricing levels.
Chief Executive Officer of Gore Street Capital, the company's investment manager, Alex O'Cinneide said: "This reinforces our existing relationship with Santander, which has been supportive since our original facility in 2021.
The additional financial flexibility will allow us to use leverage when appropriate to drive continued success and value for stakeholders."
Shares in Gore Street Energy Storage were down by 0.1% at 92.81 pence in London on Friday.
By Will Neill, Alliance News reporter
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