Gore Street Energy Storage Fund PLC Debt facility increased to GBP50m (6474D)
23 June 2023 - 4:00PM
UK Regulatory
TIDMGSF
RNS Number : 6474D
Gore Street Energy Storage Fund PLC
23 June 2023
23 June 2023
Gore Street Energy Storage Fund plc
(the "Company" or "GSF")
Debt facility increased to GBP50m with an accordion option of up
to 30% of GAV
Gore Street Energy Storage Fund plc, the internationally
diversified energy storage fund, is pleased to announce that it has
upsized its existing revolving credit facility ("RCF") with
Santander from GBP15m to GBP50m.
The Company has successfully secured GBP35m of incremental debt
arranged and syndicated between Santander UK and Banco Santander.
Pricing for the GBP50m facility remains unchanged at 300 basis
points over SONIA.
If the increased RCF is fully utilised, the Company's debt would
be equivalent to c.8% of GAV.
The four-year term of the facility extends until 2027, providing
the Company with increased financial flexibility, which will be
used to support the development of the Company's construction
portfolio and provides further headroom to explore attractive
pipeline opportunities. The facility includes an accordion option
to increase beyond GBP50m to up to 30% of Gross Asset Value
("GAV").
The Company is also separately exploring project-level financing
options in USD for its Big Rock asset in California. The asset's
revenue profile is expected to be underpinned by a long-term fixed
contract, accounting for up to 40% of project revenue, making it an
attractive candidate to introduce project-level debt at competitive
pricing levels.
Notwithstanding the debt headroom permitted under the Company's
gearing policy, net debt is not expected to exceed GBP150m, or
c.21% of GAV over the next 18 months based on funding requirements
for constructing the 522 MW of capacity targeting energisation by
December 2024 and including milestone payments for all portfolio
assets with energisation targets beyond this 18-month period. The
Company continues to review the build-out plan of its construction
portfolio while monitoring the current interest rate environment
and taking cognisance of yesterday's Bank of England interest rate
increase of 50bps. The Company's cash balance as of 31 March 2023
was GBP123.7m which is sufficient to meet all existing contractual
obligations.
Alex O'Cinneide, CEO of Gore Street Capital, the investment
manager to the Company, commented:
"We are pleased to follow last week's NAV announcement, which
showed the strength of our international portfolio, with this
positive news that we have secured additional financing that will
enable us to continue to explore attractive opportunities and
support the buildout of the Company's assets in construction. This
reinforces our existing relationship with Santander, which has been
supportive since our original facility in 2021. As reinforced
yesterday by the Bank of England's increase in the base rate, we
remain conservative in our use of debt and will maintain an
appropriate gearing ratio well within the 30% GAV limit. The
additional financial flexibility will allow us to use leverage when
appropriate to drive continued success and value for
stakeholders."
Ioana Bozan, Director, Specialised & Project Finance,
Santander UK commented:
"We are delighted to continue supporting Gore Street Energy
Storage Fund plc's acquisition pipeline and enabling the transition
to a low carbon future with an upsized GBP50m debt facility. It has
been a pleasure continuing to work with GSF's investment management
team and cementing our relationship, while delivering bespoke,
flexible funding to unlock further opportunities."
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso Tel: +44 (0) 20 3826
0290
Shore Capital (Joint Corporate
Broker)
Anita Ghanekar / Rose Ramsden / Tel: +44 (0) 20 7408
Iain Sexton (Corporate Advisory) 4090
Fiona Conroy (Corporate Broking)
J.P. Morgan Cazenove (Joint Corporate
Broker)
William Simmonds / Jérémie Tel: +44 (0) 20 3493
Birnbaum (Corporate Finance) 8000
Buchanan (Media Enquiries)
Charles Ryland / Henry Wilson / Tel: +44 (0) 20 7466
George Beale 5000
Email: gorestreet@buchanan.uk.com
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed energy storage fund and
seeks to provide Shareholders with an opportunity to invest in a
diversified portfolio of utility-scale energy storage projects. In
addition to growth through exploiting its considerable pipeline,
the Company aims to deliver consistent and robust dividend yield as
income distributions to its Shareholders.
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END
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