GCP Infrastructure Investments sets refinancing to add to asset value

(Alliance News) - GCP Infrastructure Investments Ltd on Monday said it has agreed refinancing of ...

Alliance News 15 May, 2023 | 10:05AM
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(Alliance News) - GCP Infrastructure Investments Ltd on Monday said it has agreed refinancing of two existing loan notes, worth about GBP85 million at March 31, and committed to a new GBP50 million loan as part of a syndicated facility supporting the same biomass projects.

The Jersey-based investment fund focused on UK infrastructure projects it will receive GBP11 million in fees upon completion of the transaction, which is expected to add around 1.2 pence per share to the company's net asset value. It added that the refinancing will generate GBP50 million in cash overall.

GCP Infrastructure said it will use the proceeds to repay its revolving credit facility.

The refinance is secured against two operational biomass plants, Mersey Bio Energy and Evermore Renewable Energy, the company said.

GCP Infrastructure also said it has secured one-year fixed electricity prices for two onshore windfarms in its portfolio, at GBP208 per megawatt hour. The firm said this is at a premium to the electricity price forecast used in its most recent net asset value.

It has signed a 16-month GBP180 per megawatt hour deal for eight anaerobic digestion combined heat and power projects in Northern Ireland.

Chair Andrew Didham said: "The refinancing was NAV accretive while maintaining a close relationship with well-known counterparties to the company that have been further de-risked by the addition of a further operational biomass asset. The proceeds raised support the conservative valuation of these assets in the company's net asset value and deliver additional cash resources to the company.

"Meanwhile, the [power price agreement] updates demonstrate the capability of the manager in securing attractive contracts for the portfolio over and above NAV assumptions for multiple renewable technologies, enhancing their income streams that support the company's 7.7% dividend yield, based on current share price."

GCP Infrastructure shares were up 1.8% to 91.90 pence each in London on Monday morning.

By Harvey Dorset, Alliance News reporter

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
GCP Infrastructure Investment Ord 69.60 GBX -1.97 -

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