Greencoat UK targets GBP 100m from share sale

Sep 23, 2014 - Renewable energy fund Greencoat UK Wind Plc (LON:UKW) said today it will seek to raise GBP 100 million (USD 163m/EUR 127m) in a drive to refinance its debt.

The UK investment trust intends to offer 93.5 million newly-issued ordinary shares at GBP 1.07 apiece. The offering price is below the GBP-1.095 closing price of the company’s stock on September 22, it noted. The sale, which is not underwritten, is pending shareholder approval. The offering will be launched at the end of September.

The proceeds from the placement will be allocated to repay the company’s existing bank borrowings, which have been drawn down to fund recent acquisitions. The funds will also go for general corporate needs.

RBC Europe Ltd will serve as sole sponsor and book-runner, while Winterflood Securities Ltd has been hired as lead manager of the offering. The newly-issued stock is to be admitted for trading on the London Stock Exchange on October 30.

Following its initial public offering (IPO) in March 2013, Greencoat has purchased 145 MW of wind assets and now owns 16 wind farms of 271.5 MW in total. In August, the company said it will acquire 51.6% stakes in four UK wind parks totalling 87.5 MW for a combined GBP 90.6 million.

(GBP 1.0 = USD 1.634/EUR 1.271)

Choose your newsletter by Renewables Now. Join for free!