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Renewable Energy Gen (WIND)

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Friday 10 October, 2014

Renewable Energy Gen

Sale of two wind farms to BlackRock

RNS Number : 9397T
Renewable Energy Generation Ltd
10 October 2014
 



10 October 2014

 

Renewable Energy Generation Ltd

 

Sale of two wind farms to BlackRock

 

 

Renewable Energy Generation Limited ("REG") (AIM: WIND), announces the sale of its 10MW St.Breock and 8MW Ramsey II wind farm projects to a fund managed by BlackRock ("BlackRock") for a total enterprise value of £36m.  

 

Under the agreement, BlackRock will assume project debts of £21m, once fully drawn, and REG will receive upfront cash consideration of £13.1m, with a further £1.9m payable following commissioning of the projects in 2015.  Construction funding will continue to be drawn from the existing project finance facility with ING Bank N.V. ("ING") following the successful financing in June 2014.

 

REG will oversee construction of the projects under a Construction Management Agreement and once operational, will operate the projects on behalf of BlackRock through an Asset Management Agreement.

 

The proceeds will be reinvested into REG's portfolio of consented projects including Rodbaston (4MW), French Farm (4MW), Brackagh Quarry (6MW) and Barlborough (0.9MW) as well as further REG Bio-Power projects, which REG intends to build during 2015. 

 

Andrew Whalley, Chief Executive Officer said:

 

"We are delighted to continue our strong partnership with BlackRock through the sale of these two projects as we demonstrate the value REG is creating through its development strategy.

 

"REG highly values the relationship it has developed with ING and is looking forward to working together on future financings.  

 

"This transaction also marks REG's first appointment as Construction Manager for BlackRock. With our considerable in-house experience, this is a role we are well-equipped to fulfil on similar transactions in future.  

 

"REG will maintain close links with the local communities in which these projects are based as part of its oversight of the important community funds, which will support local initiatives throughout the wind farms' operating lives."

 

Enquiries:

Renewable Energy Generation Limited

Andrew Whalley, Chief Executive Officer

David Crockford, Finance Director

Ian Lawrence, Communications Manager

+44 (0)1483 346550

Smith & Williamson Corporate Finance Limited

(Nominated Adviser)

Martyn Fraser

+44 (0)117 376 2213

Cenkos (Corporate Broker)

Bobbie Hilliam/Max Hartley

+44 (0)20 73978900

Broker Profile

Simon Courtenay
Tamsin Shephard

+44 (0)20 7448 3244

Notes to editors

Renewable Energy Generation Ltd (REG) is an AIM listed renewable energy group. Its main business is the development, construction and operation of wind farms and generating power from refined used cooking oil.

REG Windpower: based in Truro, Bath and Guildford, UK, it currently operates 11 wind projects in Cambridgeshire, Cornwall, County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a total capacity of 34.7MW as well as 3 projects on behalf of its partner BlackRock totalling 28MW. REG has around 200MW of projects in the planning system awaiting a consent.

REG Bio-Power UK Ltd: based in Nottingham, UK: it operates electricity generation plant powered by fuel recovered from used cooking oil.

Headquartered in Jersey, REG was admitted to trading on AIM, a market operated by the London Stock Exchange, in May 2005 (AIM: WIND).


This information is provided by RNS
The company news service from the London Stock Exchange
 
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