Greencoat UK Wind to acquire 35.5% stake in Stronelairg and Dunmaglass wind farms from SSE

Greencoat UK Wind Plc has agreed to acquire a stake in the Stronelairg and Dunmaglass wind farms from FTSE 100 utilities firm SSE Plc.

The FTSE 250 renewable energy investor said it would acquire a 49.9% stake in each of the wind farms in partnership with a major UK pension fund whose investment is managed by Greencoat Capital, a private equity firm.

Greencoat would obtain a net 35.5% stake in the two wind farms for £452 million, while the managed fund  would acquire a net 14.4% stake for £183 million.

The two wind farms, both located in Scotland, will continue to be operated by SSE after the acquisition, with Stronelairg and Dunmaglass carrying generation capacity of 228 megawatts (MW) and 94MW respectively as well as load factors of 43% and 44%.

The acquisitions are expected to complete by the 29^th March, after which the firm said it expected to have £794 million of outstanding debt.

Greencoat also announced a placing to raise up to £131 million by way of a non-pre-emptive issuance to institutional investors at 127p per share, a 5% discount to its last close price, which would be used to repay or reduce drawdowns on its revolving credit facility.

The placing is subject to shareholder approval at a general meeting due on the 25^th February.

Tim Ingram, chairman of Greencoat, said the “two high load factor, [Renewable Obligation Certificate] accredited wind farms” would deliver “attractive investment returns” and built on the firm’s relationship with SSE.

Source: Proactive Investors