Greencoat buys stake in offshore wind farm, launches £200m fundraise – Greencoat UK Wind has agreed to acquire a 25% stake in Burbo Bank Extension offshore wind farm from AIP. The purchase is being made in partnership with a number of pension funds investing through Greencoat Renewable Income LP, a fund also managed by Greencoat Capital. The company’s share is a net 15.7% stake in the wind farm. The total cash price to Greencoat UK Wind (including cash and working capital) is £250m. This deal is scheduled to complete on 30 November 2021.
Burbo Bank Extension is located four miles north of the Wirral in North West England. It was commissioned in July 2017, comprises 32 Vestas V164 8.13MW turbines and has a grid capacity of 258MW. Burbo Bank Extension has a load factor of 43.8% and benefits from a CFD priced at £176.57/MWh (real 2021) until 31 March 2032. Orsted will provide operation and maintenance and management services to the wind farm.
The deal will be funded using the revolving credit facility (the size of which has been increased from £400m to £600m), cashflow and the proceeds of a new equity raise launching today. Following the completion of the deal, debt should be about £1.3bn, equating to about 34% of GAV.
The share issue
Greencoat UK Wind will issue new ordinary shares by way of a placing, open offer, intermediaries offer and offer for subscription at an issue price of 132p per share. 132p represents a discount of 6.5% to the closing share price on 1 November 2021 of 141.20p, and a premium of 3.8% to the last reported NAV of 127.205p (as at 30 September 2021) (adjusted for the 1.795p dividend which is due to be paid on 26 November 2021). New shares are entitled to future dividends, including the quarterly dividend with respect to the quarter ended 31 December 2021.
The target is to raise £200m by issuing 151,992,157 shares but this may be increased.
Existing shareholders can apply for shares through the open offer on a one for 13 basis.
UKW : Greencoat buys stake in offshore wind farm, launches £200m fundraise