21st Dec 2017 07:00
Acquisition of 36MW Dromadda More wind farm from Impax, increasing generation capacity to 173MW
€250m New Revolving Credit Facility with Syndicate of Five Banks
Dublin, London – 21 December 2017 | Greencoat Renewables PLC (“Greencoat Renewables”) the Irish renewable infrastructure investment company, today announces an agreement to acquire Dromadda More, a 36MW wind farm from Impax Asset Management (“Impax”) and a new €250 million Revolving Credit Facility (“RCF”).
Highlights
Greencoat Renewables has agreed to acquire the 36MW Dromadda More Wind farm in County Kerry from Impax for a total consideration of €88.4 million A new €250 million RCF put in place with a syndicate of five domestic and international banks: AIB, BNP Paribas, Commerzbank, Royal Bank of Canada and Santander The RCF, which has a tenor of three years, will be used to re-finance existing project finance debt of €71 million and fund new acquisitions including 36MW of operating wind capacity announced today Following the re-financing of existing debt and completion of the acquisition of Dromadda More, the RCF will provide capacity for a further €95 million of acquisitionsDromadda More Windfarm Dromadda More is located in County Kerry and consists of 11 Vestas V112 turbines. It has a capacity of 36MW. The wind farm is currently being energised and is expected to be formally commissioned in March 2018 at which point the acquisition will complete.
As a newly built asset, Dromadda More will benefit from a full 15 years of REFIT-2 revenues, guaranteeing a minimum floor price for the electricity produced by the asset. The acquisition will be subject to an adjustment mechanism that will assess actual energy production over a twelve-month period and the acquisition price will be adjusted accordingly.
New €250 million Revolving Credit Facility As outlined at the time of IPO in July 2017, Greencoat Renewables intended to put in place a new RCF to enable the acquisition of further operating assets in the secondary wind market. Greencoat Renewables has now put in place a three year €250 million RCF with a syndicate of five domestic and international banks: AIB, BNP Paribas, Commerzbank, Royal Bank of Canada and Santander.
The RCF will be used to pay down the remaining €71 million of project finance debt associated with Greencoat Renewables’ 137MW portfolio of seed assets, finance the acquisition of the Dromadda More wind farm and provide additional financial capacity for further acquisitions when attractive opportunities appear. Over time and in line with strategy, Greencoat Renewables may refinance some or all of the RCF debt in the equity capital markets, freeing up the RCF for further acquisitions as required.
Bertrand Gautier, Partner at Greencoat Capital, the Investment Manager, said: “As set out at the time of IPO, we have now established a new Revolving Credit Facility with a syndicate of five banks to allow us to effectively pursue wind generation assets when the right opportunities arise. We are very pleased with the terms of the facility, and the acquisition flexibility that it will provide.”
Paul O’Donnell, Partner at Greencoat Capital, the Investment Manager, added: “We are very pleased to have acquired Dromadda More - a high quality asset with a high load factor which also benefits from 15 years of REFIT. Dromadda More represents the first acquisition for Greencoat Renewables PLC since IPO and underpins the growth opportunity that we believe exists in the Irish onshore wind market. It is an excellent addition to our seed portfolio, and value-accretive to our shareholders.”
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For further details contact:
| Greencoat Capital LLP (Investment Manager) | |||||
| Bertrand Gautier | +44 20 7832 9400 | ||||
| Paul O’Donnell Tom Rayner | |||||
| FTI Consulting (Investor Relations & Media) | |||||
| Jonathan Neilan | +353 1 765 0886 | ||||
| Melanie Farrell | |||||
| Davy Corporate Finance (NOMAD and ESM Adviser) Fergal Meegan Barry Murphy | +353 1 679 6363 | ||||
| RBC Capital Markets (Joint Broker) Matthew Coakes Jonathan Hardy | +44 20 7653 4000 |
About Greencoat Renewables PLC
Greencoat Renewables PLC is an investor in euro-denominated renewable energy infrastructure assets, and is focused on the acquisition and management of operating wind farms in Ireland. It is managed by Greencoat Capital LLP, an experienced investment manager in the listed renewable energy infrastructure sector.
The Board and the Investment Manager believe there is a significant opportunity to consolidate ownership of operational wind farms in Ireland over the short to medium term.
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