Greencoat UK Wind tops up stake in Clyde windfarm – Greencoat UK Wind PLC has entered into an agreement to make a further investment in Clyde Windfarm (Scotland) Limited, together with GLIL Corporate Holdings Limited, the infrastructure investment vehicle of certain local authority pension funds.
As agreed at acquisition in March 2016, the Clyde Extension construction indemnity provided by, power company, SSE will fall away on the commercial operation date of the Clyde Extension (this is expected to occur in late August 2017). Greencoat UK Wind and GLIL’s shareholding in Clyde will be diluted from 49.9% (Greencoat UK Wind 28.2%) to 30% (Greencoat UK Wind 17%). On the dilution date in August, Greencoat UK Wind and GLIL will acquire an additional 5% (Greencoat UK Wind 2.8%) of Clyde for a consideration of GBP67.8 million (Greencoat UK Wind GBP38.3 million).
Greencoat UK Wind is also pleased to announce that Greencoat UK Wind and GLIL have entered into a call option to buy a further 14.9% (Greencoat UK Wind 8.4%) of Clyde for a consideration of GBP202.2 million (Greencoat UK Wind GBP114.2 million). The option is exercisable between 1 April 2018 and 30 June 2018, and is exercisable by Greencoat UK Wind and GLIL or by either one of them.
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 350 MW. Clyde North consists of 47 Siemens 2.3 MW turbines and has a generating capacity of 108MW, while Clyde Central and Clyde South consist of 49 turbines (113 MW) and 56 turbines (129 MW) respectively. Clyde Extension consists of 54 Siemens 3.2 MW turbines with a total capacity of 173 MW.
Tim Ingram, Chairman of UKW, commented: “We are delighted to make a further investment in Clyde, one of the largest series of onshore wind farms in the UK, and also to enter into an option to increase our investment again next year.”
Stephen Lilley of Greencoat Capital added: “We’ve been really pleased with the performance of our Clyde investment over the last 15 months and have watched with interest SSE’s build-out of the extension. We look forward to continuing our partnership with SSE and GLIL“.
The acquisition, which is expected to complete in late August 2017, will be funded by Greencoat UK Wind’s revolving credit facility. Following completion of the acquisition, at GBP213 million, Greencoat UK Wind’s total outstanding debt is expected to be approximately 21% of Gross Asset Value (leverage limit 40%).
UKW : Greencoat UK Wind tops up stake in Clyde windfarm
