TIDMNESF
RNS Number : 5035V
NextEnergy Solar Fund Limited
31 January 2017
31 January 2017
NextEnergy Solar Fund Limited ("NESF", or the "Company")
New Long-Term Debt Facility
- New long-term GBP150 million debt facility (the "Facility") with attractive terms secured
- Facility refinances solar portfolio comprising 21 plants
(installed capacity of 241MWp) of NESF's total existing portfolio
of 38 plants (total installed capacity of 439MWp)
- The Facility fully amortises by its maturity in 2035, has
fixed interest rates and an initial five-year grace period for
principal amortisation
- Upon full drawdown of the Facility, total debt will amount to
GBP270.2m, representing gearing of 37% of pro-forma gross asset
value ("GAV")
NESF is pleased to announce the signing of a GBP150 million debt
facility with a syndicate of lenders including Macquarie
Infrastructure Debt Investment Solutions ("MIDIS"), National
Australia Bank ("NAB") and Commonwealth Bank of Australia
("CBA").
The Facility provides long-term debt financing, with a maturity
in 2035 that matches the regulated life of the portfolio, and
comprises a mix of fixed rate and inflation-linked debt products
with a blended cost of 3.32%. This debt structure maximises the
portfolio's cash flow generation whilst eliminating refinancing and
interest rate risks.
The Facility is secured by a 241MW portfolio of assets that were
previously financed by the GBP120m RCF drawn by NESF over the last
two years. The high quality of the existing operating portfolio and
the low gearing represented by the Facility allowed NESF to secure
attractive terms and conditions. In particular, the Facility has a
number of value-adding features, including:
-- Bespoke five-year grace period for principal amortisation
that contains no principal repayment over that period;
-- Staged draw-down to reduce cash-drag and minimise interest expenses in the first year;
-- Hybrid structure with bank and institutional tranches to minimise costs of debt;
-- Competitive upfront fees and all-in weighted average cost of debt of 3.32%; and
-- Retained flexibility over power sales strategy
Summary terms:
Tranche Amount Tenor Amortisation
starting
in
------------- ---------- ----------- -------------
Bank Tranche c. GBP48m 10 years Year 6
------------- ---------- ----------- -------------
RPI Linked c. GBP39m 18.5 years Year 11
Tranche
------------- ---------- ----------- -------------
Fixed Rate c. GBP63m 18.5 years Year 11
Tranche
------------- ---------- ----------- -------------
Total GBP150m
------------- ---------- ----------- -------------
The terms were agreed following a competitive process to select
MIDIS, NAB and CBA. The Company's Investment Advisor, NextEnergy
Capital Limited, did not charge any fee for this transaction. The
Company was advised by Santander Global Corporate Banking
("Santander") and Stephenson Harwood LLP as financial and legal
advisor whereas the syndicate of lenders were advised by Ashurst
LLP.
In addition to the Facility, the Company has pre-existing
long-term debt facilities in place with MIDIS (GBP54.7m) and
Bayerische Landesbank (GBP43.8m) as well as a credit facility with
NIBC maturing in June 2019 (GBP21.7m). Upon full drawdown of the
Facility, NESF will have total debt facilities outstanding of
GBP270.2 million, which represents a gearing of 37% of pro-forma
GAV.(1)
Kevin Lyon, Chairman of NESF, commented:
"This long-term debt facility demonstrates the attractiveness of
NESF's high-quality portfolio of operating solar assets to debt
investors. We have always been confident in the ability to
refinance the RCF in due course with the issuance of long-term
debt.
The new facility improves our near-term cash flow generation
materially and the expected cash dividend cover, whilst maintaining
a conservative level of gearing in line with our stated
strategy.
At present we have letters of intent and are in advanced
negotiations covering a portfolio of c.197MWp for an investment
value of c.GBP205 million. We expect to announce further
acquisitions from this pipeline shortly."
Note:
(1) Based on the Company's latest published NAV adjusted for
issuance of capital and dividends paid of GBP458.7m.
For further information:
NextEnergy Capital Limited 020 3239 9054
Michael Bonte-Friedheim
Aldo Beolchini
Cantor Fitzgerald Europe 020 7894 7667
Sue Inglis
Fidante Capital 020 7832 0900
Robert Peel
Justin Zawoda-Martin
Shore Capital 020 7408 4090
Bidhi Bhoma
Anita Ghanekar
Macquarie Capital (Europe)
Limited 020 3037 2000
Nick Stamp
MHP Communications 020 3128 8100
Andrew Leach / Jamie
Ricketts
Notes to Editors:
NextEnergy Solar Fund (NESF)
NESF is a specialist investment company that invests in
operating solar power plants in the UK. Its objective is to secure
attractive shareholder returns through RPI-linked dividends and
long-term capital growth. The Company achieves this by acquiring
solar power plants on agricultural, industrial and commercial
sites.
NESF has raised equity proceeds of GBP465m since its initial
public offering on the main market of the London Stock Exchange in
April 2014. It also has credit facilities of GBP270.2m in place
(GBP150m from a syndicate including MIDIS, NAB and CBA; MIDIS:
GBP54.7m; Bayerische Landesbank: GBP43.8m; and NIBC: GBP21.7m).
NESF is differentiated by its access to NextEnergy Capital Group
(NEC Group), its Investment Manager, which has a strong track
record in sourcing, acquiring and managing operating solar assets.
WiseEnergy is NEC Group's specialist operating asset management
division, providing solar asset management, monitoring and other
services to over 1,250 utility-scale solar power plants with an
installed capacity in excess of 1.7 GW.
Further information on NESF, NEC Group and WiseEnergy is
available at www.nextenergysolarfund.com, www.nextenergycapital.com
and www.wise-energy.eu.
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCGMGFMVGKGNZM
(END) Dow Jones Newswires
January 31, 2017 02:00 ET (07:00 GMT)
Nextenergy Solar (LSE:NESF)
Historical Stock Chart
From Apr 2024 to May 2024
Nextenergy Solar (LSE:NESF)
Historical Stock Chart
From May 2023 to May 2024