Greencoat UK Wind has announced that it has entered into an agreement to acquire 49.9% of Clyde Windfarm (Scotland) Limited from SSE for a headline consideration of £355m, together with GMPF & LPFA Infrastructure LLP, the infrastructure investment joint venture between Greater Manchester Pension Fund and London Pensions Fund Authority. UKW will acquire 28.2% of Clyde and the pension funds will acquire 21.7%. SSE will continue to hold 50.1%.
Clyde is located in South Lanarkshire and consists of the Clyde North, Clyde South and Clyde Central wind farms, with a combined generating capacity of approximately 350 MW and a net load factor of 33.0%. Clyde North consists of 47 Siemens 2.3 MW turbines with a total capacity of 108 MW and is ROC accredited from August 2012. Clyde Central consists of 49 Siemens 2.3 MW turbines with a total capacity of 113 MW and is ROC accredited from January 2012. Clyde South consists of 56 Siemens 2.3 MW turbines with a total capacity of 129 MW and is ROC accredited from July 2011. All were developed by SSE and receive 1 ROC per MWh. SSE will continue to operate the assets with Siemens providing turbine operation and maintenance.
SSE is in the process of constructing Clyde Extension, which will consist of 54 Siemens 3.2 MW turbines with a total capacity of approximately 173 MW and an expected net load factor of 37.8% and will receive 0.9 ROCs per MWh. SSE is providing a construction wrap: once Clyde Extension is operational, Greencoat’s and the pension fund’s shareholding in Clyde will be diluted (with an implied Clyde Extension value of £467m subject to certain adjustments). Under the shareholders’ agreement, Greencoat UK Wind and the pension funds have a right of first offer to increase their stake.
The acquisition, which is expected to complete on 18 March 2016, will be funded by £165m from Greencoat’s revolving credit facility, an increase of £25m in their fixed-rate loan with the Commonwealth Bank of Australia, £5m of cash that they have already and Clyde’s own cash balances. Following completion of the acquisition, at £325m, UKW’s total outstanding debt is expected to be approximately 38% of Gross Asset Value (leverage limit 40%).
UKW : Greencoat UK Wind and partners buy half of Clyde wind farm