Greencoat UK Wind expands portfolio, completes £725m refinancing
By Josh White
Date: Thursday 24 Oct 2024
(Sharecast News) - Greencoat UK Wind updated the market on its third quarter on Thursday, reporting that as of 30 September, its unaudited net asset value stood at £3.6bn, or 158.6p per share.
The FTSE 250 company also declared a dividend of 2.5p per share.
It said that during the period, it increased investment in the Kype Muir Extension wind farm, and successfully refinanced its debt facilities.
The firm, alongside another fund managed by Schroders Greencoat, acquired the remaining 50.1% stake in the Kype Muir Extension wind farm from OnPath Energy.
Greencoat UK Wind invested £14.25m from its available cash to increase its total ownership to 66%.
The acquisition was accretive to the company's net asset value, and boosted its net generating capacity to 2,017MW.
In addition, Greencoat UK Wind completed a £725m refinancing of its debt facilities during the quarter.
That included reducing its revolving credit facility (RCF) to £400m, with £300m drawn as of 30 September.
The board said the margin on the revolving credit facility decreased from 1.75% to 1.5%, and the facility would now mature in October 2027.
Greencoat also refinanced £325m in term loans and placed an additional £100m of term debt to reduce its drawn revolving credit facility.
The new term loans mature between 2029 and 2031, while the weighted average cost of debt rose slightly to 4.68%.
"The third quarter has been a busy and productive period for Greencoat UK Wind," said chair Lucinda Riches.
"We have increased our investment in Kype Muir Extension, a high quality wind farm at a price accretive to net asset value, and refinanced both our revolving credit facility and near-maturing term debt with our existing set of supportive lenders."
Riches said the migration to a common terms arrangement further enhanced the firm's debt platform.
"Our ability to conduct a competitive refinancing with our existing lenders is testament to the attractiveness of the company's credit.
"We continue actively to progress selective disposal opportunities, with a view to reducing the company's gearing and providing flexibility for further capital allocation."
At 1350 BST, shares in Greencoat UK Wind were up 0.68% at 136.42p.
Reporting by Josh White for Sharecast.com.
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