PKF Francis Clark Lead Adviser on Successful Disposal of N.I. Wind Farm
19 Mar 2018
PKF Francis Clark’s corporate finance team is delighted to announce that it has successfully advised ERG Power Generation SpA (“ERG”) and TCI Renewables Limited (“TCI”) on the disposal of 100% of their interest in Brockaghboy Wind Farm (“BWF”) to Greencoat UK Wind PLC (“Greencoat”). The award winning CF team acted as lead advisor to ERG and TCI in organising the transaction, which completed on 7 March 2018, for total consideration of c. £163m.
BWF is located approximately 30 miles east of Londonderry in Northern Ireland. Since February 2016, when ERG acquired BWF, ERG and TCI have worked together to construct, commission and accredit the largest distinct wind farm in Northern Ireland with a capacity of 47.5MW. The wind farm, which was fully commissioned in February 2018, is accredited to receive 0.9 ROCs per MWh.
As lead advisers for the transaction, Richard Harris and Andy Thornhill from PKF Francis Clark, worked closely with ERG and TCI to approach the market and manage offers from a number of potential equity and debt providers. Throughout an efficient 3 month disposal process, offers from the leading parties were developed to the point where Greencoat were ultimately selected as the preferred party.
Wes Dickson, Finance Director of TCI “We have a long established successful relationship with the PKF team who provided TCI and ERG with comprehensive and timely advice in preparation for and throughout this important disposal process. Continuity of a senior, trusted advisory team throughout the transaction ensured we secured engagement with key investors in the market, leading to the delivery of a market leading result which exceeded our expectations.”
Richard Harris at PKF Francis Clark commented, ” We were delighted to work with ERG and TCI to bring this high quality asset to market and conclude a deal which crystallises the value from years of hard work for their respective teams. Market developments such as the transition to I-SEM in Northern Ireland and Brexit created challenges that were successfully mitigated in ensuring a clean and good value transaction for all parties.”
The acquisition was funded by UKW’s revolving credit facility (£100 million) plus an increase in UKW’s term debt facility with Commonwealth Bank of Australia (£50 million) plus reinvestment of portfolio cash (approximately £13 million). The new tranche under the term debt facility has a term of 7 years. Following the acquisition, UKW’s total borrowings amount to £415 million (£150 million under the term debt facility plus £265 million under the revolving credit facility), equivalent to 27% of Gross Asset Value (gearing limit 40%).
Andy Killick, Partner and Head of Corporate Finance at PKF Francis Clark added, “The successful disposal of Brockaghboy Wind Farm at a market leading price illustrates the benefit of working with PKF’s award winning corporate finance team. The process benefited from our global network of investors but also the local onshore wind and Northern Ireland sector expertise of the transaction team, to ensure a fantastic result for our client.”