Gore Street Energy Storage (GSF) has increased the size of two of its financing facilities – one at project level for its Big Rock project, and one at the company level.
GSF’s wholly owned subsidiary, Big Rock ESS Assets LLC, which owns the 200MW / 400MWh Big Rock project in California, has successfully completed a loan conversion process and has upsized its facility with First Citizens Bank from an initial US$60m to US$90m, following the project successfully completing construction milestones. GSF says that this increased facility will finance the remaining capital costs of Big Rock, which has secured a 12-year fixed price contract known as the Resource Adequacy contract. This should provide a stable revenue stream worth over US$14m annually, and is expected to account for up to 40% of total project revenues. Big Rock is expected to benefit from investment tax credits covering up to 30% of eligible capital costs under the 2022 US Inflation Reduction Act, which significantly reduces the project’s capital costs.
GSF has also upsized its revolving credit facility (RCF) with Santander Group from £50m to £100m, with a four-year term extending to 2028. The RCF continues to pay interest at a rate of 300 basis points over SONIA, ratcheting to up to 350 basis points over SONIA subject to the prevailing debt to GAV ratio. GSF says that this larger facility provides it with additional flexibility to finalise the buildout of its in-construction assets, including potential duration expansions or the ability to consider building out additional capacity from its pipeline.
