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Greencoat UK Wind to Acquire Four Wind Farms for £90 Million

21 Aug 2014

The Board of UKW has announced that it has entered into an agreement to acquire a 51.6% stake in Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from subsidiaries of The AES Corporation (“AES”), a global power company, for a total consideration of £90.6 million.

The acquisitions, which are expected to complete on 22 August, will include the prepayment of existing indebtedness and will be funded through reinvestment of UKW’s cash resources and its acquisition debt facility provided by RBC, RBS and Santander.

Sixpenny Wood Wind Farm is located near Goole in the East Riding of Yorkshire and has a total capacity of 20.5 MW, a forecast net load factor of 31.0% and has been operational since July 2013.

Yelvertoft Wind Farm is located east of Rugby in Northamptonshire and has a total capacity of 16.4 MW, a forecast net load factor of 28.6% and has been operational since July 2013.

North Rhins Wind Farm is located on the North Rhins peninsula, west of Stranraer in Dumfries and Galloway and has a total capacity of 22.0 MW, a forecast net load factor of 37.8% and has been operational since December 2009.

Drone Hill Wind Farm is located west of Eyemouth in the Borders and has a total capacity of 28.6 MW, a forecast net load factor of 23.7% and has been operational since August 2012. All four wind farms were developed and constructed by AES and receive 1 ROC per MWh.

Tim Ingram, Chairman, said: “We are pleased to announce the acquisition of Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from AES and to increase our investment portfolio to 16 UK wind farms with net generating capacity of 271.5MW. AES is the fifth seller of wind farms to UKW, a testament to the Company’s independence and to its ability to be selective in its acquisitions.”

Following completion, at £225 million, UKW’s total outstanding debt is expected to be approximately 38% of Gross Asset Value (leverage limit 40%).

As previously announced, the Company will be paying a dividend of £10.6m (3.08p per share) on 29 August 2014 in respect of the six months to 30 June 2014.

Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A., a fund managed by Swiss Life Asset Managers will co-invest alongside UKW and acquire the remaining 48.4%. The acquisitions will be made through a joint holding company. Colville Partners advised.

Story appears courtesy of Greencoat UK Wind.

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