Fred Olsen Renewables closed the £303.5 million ($475 million) refinancing of its UK wind farm portfolio on October 31. The deal used a structure that wove in the financing of a planned 138MW onshore wind farm, Crystal Rig II, into the refinancing of three operational onshore wind farms.
Crystal Rig II is a 60-turbine farm to be located near to the existing 62.5MW Crystal Rig I facility, 40km east of Edinburgh. The three separate facilities used to finance the 50MW Rothes, 64MW Paul's hill and Crystal Rig farms – which were built in and around 2004 – were refinanced into a package that included Crystal Rig II's financing.
Fred Olsen felt that the pricing of the loan for new project would be better if it was bundled in with a cross-collateralised refinancing of the other three facilities, according to Nick Emery, managing director of Fred Olsen Renewables UK. Or, as Chris Andrew, a partner at Allen & Overy, which represented the developer, noted "day-one cash flow is always an attractive possibility, because people aren't looking at a naked construction period."
The debt portion of the refinancing was originally set to be £326 million, but "in the current market we thought it would be wise to put some more equity in from our end," said Emery. HSBC was financial adviser on the...
Thank you for printing this article from IJGlobal.
As the leading online publication serving the infrastructure investment market, IJGlobal is read daily by decision-makers within investment banks, international law firms, advisory firms, institutional investors and governments.
If you have been given this article by a subscriber, you can contact us through www.ijglobal.com/signup, or call our London office on +44 (0)20 7779 8870 to discuss our subscription options.
Thank you for your interest in using My IJGlobal.
As your firm uses IP recognition, you will need to sign in with your own unique login and password. If you do not have your own login details, please click here to register.
Alternatively, contact the IJGlobal Helpdesk on +44 (0)20 7779 8870 or email Helpdesk on firstname.lastname@example.org.