Gresham House Energy Storage Fund GBP180m Debt Facility Secured (2214M)
20 September 2021 - 4:00PM
UK Regulatory
TIDMGRID
RNS Number : 2214M
Gresham House Energy Storage Fund
20 September 2021
THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION .
20 September 2021
Gresham House Energy Storage Fund plc
("GRID" or the "Company")
GBP180m debt facility secured
Unlocks further pipeline deployment of grid scale battery storage opportunities
Gresham House Energy Storage Fund plc, the UK's largest fund
investing in utility-scale battery energy storage systems, is
pleased to announce it has agreed a new five year GBP180m debt
facility (the "Facility") with a syndicate of banks including
Commonwealth Bank of Australia, Lloyds Bank, NatWest and
Santander.
The Facility comprises a GBP150m capex term facility and a
GBP30m revolving working capital facility. The interest rate is
300bps over SONIA (before hedging). The capex facility also
provides for an uncommitted accordion which could increase the
total amount borrowed up to GBP380m over time.
These proceeds will be used to fund the remainder of the
Subsequent Pipeline which was announced in July. The Facility may
also be used for other projects.
As part of the closing of this transaction, GRID shall repay the
GBP8m of outstanding Power Bond debt.
John Leggate, CBE, Chair of Gresham House Energy Storage Fund
plc, said:
"Achieving this benchmark transaction demonstrates the pace at
which Britain's energy storage market is maturing. Our ability to
scale GRID's operating portfolio to match the rapid growth in
renewable power generation in the UK ensures that we remain at the
forefront of the industry's development and opportunities.
"With this facility, GRID is taking a measured approach to
leverage and optimising the capital structure on attractive
terms".
Ben Guest, Lead Fund Manager and Managing Director of Gresham
House New Energy, commented:
"We are delighted with the successful completion of this
transaction, the terms achieved and the quality of the institutions
that have taken part. Introducing a modest amount of cost-effective
leverage to the portfolio has been an ambition since IPO. It allows
us to significantly reduce both cash drag and our weighted average
cost of capital, even at a relatively low leverage ratio of 25-30%
once fully drawn. It will also allow us to improve dividend cover
for a given revenue level, which is a key goal for the Manager.
The Manager and Board would like to thank the Jefferies Debt
Advisory Team very much for introducing this opportunity and for
managing the transaction so smoothly on the Company's behalf."
For Further Information
Gresham House New Energy
Ben Guest
Rupert Robinson +44 (0)20 3837 6270
Jefferies International Limited
Stuart Klein
Gaudi Le Roux +44 (0)20 7029 8000
KL Communications gh@kl-communications.com
Charles Gorman +44 (0)20 3995 6673
Will Sanderson
Millie Steyn
About the Company and the Manager:
Gresham House Energy Storage Fund plc seeks to provide investors
with an attractive and sustainable dividend over the long term by
investing in a diversified portfolio of utility-scale battery
energy storage systems (known as BESS) located in Great Britain,
Northern Ireland, and the Republic of Ireland. In addition, the
Company seeks to provide investors with the prospect of capital
growth through the re-investment of net cash generated in excess of
the target dividend in accordance with the Company's investment
policy.
Gresham House Asset Management is the FCA authorised operating
business of Gresham House plc, a London Stock Exchange quoted
specialist alternative asset manager. Gresham House is committed to
operating responsibly and sustainably, taking the long view in
delivering sustainable investment solutions.
www.greshamhouse.com
Definition of utility-scale battery energy storage systems
(BESS)
Utility-scale battery energy storage systems (BESS) are the
enabling infrastructure that will support the continued growth of
renewable energy sources such as wind and solar, essential to the
UK's stated target to reduce carbon emissions. They store excess
energy generated by renewable energy sources and then release that
stored energy back into the grid during peak hours when there is
increased demand.
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