The Board of Greencoat UK Wind (UKW) has entered into an agreement to acquire a 51.6% stake in Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from subsidiaries of The AES Corporation , a global power company, for a total consideration of £90.6 million (US$150 million).
The acquisitions, which are expected to complete on 22 August, will include the prepayment of existing indebtedness and will be funded through reinvestment of UKW's cash resources and its acquisition debt facility provided by RBC, RBS and Santander.
Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A., a fund managed by Swiss Life Asset Managers will co-invest alongside UKW and acquire the remaining 48.4%. The acquisitions will be made through a joint holding company. Colville Partners advised.
All four wind farms were developed and constructed by AES and receive 1 ROC per MWh. The UK wind farms are the following:
Tim Ingram, Chairmanof UKW, stated:
We are pleased to announce the acquisition of Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from AES and to increase our investment portfolio to 16 UK wind farms with net generating capacity of 271.5MW. AES is the fifth seller of wind farms to UKW, a testament to the Company's independence and to its ability to be selective in its acquisitions.
Following completion, at £225 million, UKW's total outstanding debt is expected to be approximately 38% of Gross Asset Value (leverage limit 40%).