Glasshouse loan deal frees up cash for KKV – Triple Point Energy Efficiency Infrastructure (TEEC) has refinanced a loan in KKV Secured Loan’s portfolio. It turns out that one of this deal was one of the target CHP+ assets that Triple Point had identified at IPO. These are held by Harvest Generation Services and Glasshouse Generation. Under the terms of the investment, TEEC has provided £21m of senior debt finance secured against Harvest and Glasshouse, the underlying assets, equipment, and contracts. The interest rate is 7.75% per annum, each loan carries a term of 10 years, and each loan is amortising over 14 years, with the residual amount to be repaid at maturity.
Triple Point Energy Efficiency notes that the CHP+ units at both Harvest and Glasshouse are significantly more efficient than the old engines (operational until 2015), with regards to both electric efficiency (~42% efficiency compared against ~33%) and thermal efficiency (~48% efficiency compared against ~32%). The new engines are therefore almost 90% efficient (i.e. 90% of the fuel energy is converted into electricity and hot water) and are less carbon-intensive.
KKV Secured Loan Fund (KKVL) was holding the two loans held in its ordinary share class portfolio. The two loans provided an IRR to KKV Secured Loan of 9.50% across both loans. The total consideration payable to KKVL is £16.04m.
[We wrote a brief story back in 2015 when SQN (as the fund was then called) made the loans. We noted that the tomato greenhouses on the Isle of Wight are part of a project managed by Triple Point. No great surprise then that TEEC was able to secure this deal. The loans were one of the better quality investments that SQN made. KKV completed a return of capital just last week so we aren’t sure how long it will be before ordinary shareholders get their hands on the money, but this is clearly more good news for them.]
TEEC / KKVL : Glasshouse loan deal frees up cash for KKV