Greencoat UK Wind has announced proposals to launch a programme to issue up to 300m new shares. The company says that the proceeds of the programme will be used,” to pay down the company’s revolving facility agreement enabling the company to pursue further attractive investment opportunities”. and that it plans to issue the shares, over the next 12 months, through a number of tranches,
The company says that, following the acquisition of Stroupster Wind Farm in December 2015 and a 28.2% interest in Clyde Wind Farm in March 2016 for an aggregate consideration of approximately £280m, it has outstanding borrowings of £225m under its revolving facility agreement and £100m under its long term facility agreement, equivalent to 38% of gross asset value, whilst the company’s total gearing is limited to 40%.
The company’s board says that it believes that the share issuance programme will offer significant benefits for all shareholders and the company. Specifically, they believe that the proceeds will enable the company to access a strong pipeline of potential investment opportunities, reduce borrowings and bring the company’s gearing into line with its long term target range (20% to 30%), improve liquidity in the trading of the company’s shares from an expanded equity base and that, as the initial issue is at a price above the ex-dividend NAV per share, it will be NAV per share enhancing. The company expects to publish a prospectus on 18 April 2016 and says it will make a further announcement on the publication of the prospectus. The proposals require shareholder approval and an EGM is scheduled for 10 May 2016.
Greencoat UK Wind announces proposals for a share issuance programme : UKW