£180m Debt Facility Secured

RNS Number : 2214M

Gresham House Energy Storage Fund

20 September 2021

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION .

20 September 2021

Gresham House Energy Storage Fund plc

("GRID" or the "Company")

£180m debt facility secured

Unlocks further pipeline deployment of grid scale battery storage   opportunities  

Gresham House Energy Storage Fund plc, the UK's largest fund investing in utility-scale battery energy storage systems,  is pleased to announce it has agreed a new five year £180m debt facility (the "Facility") with a syndicate of banks including Commonwealth Bank of Australia, Lloyds Bank, NatWest and Santander.

The Facility comprises a £150m capex term facility and a £30m revolving working capital facility. The interest rate is 300bps over SONIA (before hedging).  The capex facility also provides for an uncommitted accordion which could increase the total amount borrowed up to £380m over time.

These proceeds will be used to fund the remainder of the Subsequent Pipeline which was announced in July.  The Facility may also be used for other projects. 

As part of the closing of this transaction, GRID shall repay the £8m of outstanding Power Bond debt.

John Leggate, CBE, Chair of Gresham House Energy Storage Fund plc, said:

"Achieving this benchmark transaction demonstrates the pace at which Britain's energy storage market is maturing. Our ability to scale GRID's operating portfolio to match the rapid growth in renewable power generation in the UK ensures that we remain at the forefront of the industry's development and opportunities.

"With this facility, GRID is taking a measured approach to leverage and optimising the capital structure on attractive terms".

Ben Guest, Lead Fund Manager and Managing Director of Gresham House New Energy, commented:

"We are delighted with the successful completion of this transaction, the terms achieved and the quality of the institutions that have taken part.  Introducing a modest amount of cost-effective leverage to the portfolio has been an ambition since IPO.  It allows us to significantly reduce both cash drag and our weighted average cost of capital, even at a relatively low leverage ratio of 25-30% once fully drawn.  It will also allow us to improve dividend cover for a given revenue level, which is a key goal for the Manager.

The Manager and Board would like to thank the Jefferies Debt Advisory Team very much for introducing this opportunity and for managing the transaction so smoothly on the Company's behalf."

For Further Information

Gresham House New Energy Ben Guest Rupert Robinson	[phone]
Jefferies International Limited Stuart Klein Gaudi Le Roux	[phone]
KL Communications Charles Gorman Will Sanderson Millie Steyn	[e-mail] [phone]

About the Company and the Manager:

Gresham House Energy Storage Fund plc seeks to provide investors with an attractive and sustainable dividend over the long term by investing in a diversified portfolio of utility-scale battery energy storage systems (known as BESS) located in Great Britain, Northern Ireland, and the Republic of Ireland. In addition, the Company seeks to provide investors with the prospect of capital growth through the re-investment of net cash generated in excess of the target dividend in accordance with the Company's investment policy.

Gresham House Asset Management is the FCA authorised operating business of Gresham House plc, a London Stock Exchange quoted specialist alternative asset manager. Gresham House is committed to operating responsibly and sustainably, taking the long view in delivering sustainable investment solutions.

www.greshamhouse.com

Definition of utility-scale battery energy storage systems (BESS)

Utility-scale battery energy storage systems (BESS) are the enabling infrastructure that will support the continued growth of renewable energy sources such as wind and solar, essential to the UK's stated target to reduce carbon emissions. They store excess energy generated by renewable energy sources and then release that stored energy back into the grid during peak hours when there is increased demand.

 

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