2nd Nov 2021 10:31
(Alliance News) - Greencoat UK Wind PLC on Tuesday said it has agreed to acquire a 25% stake in Burbo Bank Extension offshore wind farm from AIP.
Burbo Bank Extension is located four miles north of the Wirral in North West England. It was commissioned in July 2017, and comprises 32 Vestas V164 8.13 megawatts turbines and has a grid capacity of 258 megawatts.
The acquisition will be completed in partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital.
Greencoat UK Wind said it will acquire a net 15.7% stake in the wind farm for GBP250 million. The acquisition is scheduled to complete on November 30.
The London-based investor in renewable energy infrastructure sector said the acquisition will be funded using its revolving credit facility, cashflow and the proceeds of a new equity raise.
Greencoat UK Wind on Tuesday launched an open offer, subscription and placing at a price of 132 pence a share to fund the acquisition and repay amounts drawn under the facility agreement, which it has recently increased to GBP600 million from GBP400 million. Following the completion of the acquisition, the company said it expects to have GBP1.3 billion of drawn aggregate group debt.
The issue price represents a discount of 6.5% to the closing share price on Monday of 141.20p. FTSE 250-listed Greencoat UK Wind shares were trading 5.5% lower in London on Tuesday at 133.41 pence each.
"Anticipating our commitments over the next 18 months, the equity raise launched today will enable the Company to pay down debt and continue to capitalise on the strong pipeline of opportunities in the UK wind farm market, both onshore and offshore," said Chair Shonaid Jemmett-Page.
By Evelina Grecenko; [email protected]
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