Ecofin US Renewables Infrastructure

Wind Acquisition Commitment
RNS Number : 9305P
Ecofin US Renewables Infrastr.Trust
22 October 2021
 

21 October 2021

 

ECOFIN U.S. RENEWABLES INFRASTRUCTURE TRUST PLC

 

Wind Acquisition Commitment

 

The Board of Ecofin U.S. Renewables Infrastructure Trust PLC ("RNEW" or the "Company") is pleased to announce the contractual commitment of the following $49.0 million acquisition, which will be funded by a combination of the remaining net proceeds from the IPO and from the newly established Revolving Credit Facility. The closing of this transaction will fully deploy the Company's IPO proceeds and satisfy RNEW's diversification objective for wind energy.

 

$49.0 million commitment to the acquisition of a 60 MW operating wind asset ("Whirlwind")

 

Whirlwind is a proven operating wind asset, placed in service in December 2007, using 26 Siemens 2.3 MW wind turbine generators with operations and maintenance performed by Siemens Gamesa under a long-term service and maintenance agreement.  It benefits from a fixed-price power purchase agreement with an investment grade electric utility with over 6 years remaining on the initial contract term, providing predictable cash flow.  Whirlwind is located in Texas, which is experiencing sustained growth in electricity demand due to population growth and corporations migrating to this business friendly state.  With electricity prices linked to natural gas prices, which have been rising, these factors provide a good backdrop for recontracting in the future and potential for inflation protection.

 

With the inclusion of Whirlwind, RNEW's portfolio will have a weighted average remaining revenue contract term of approximately 17 years.  It will provide additional diversification to RNEW's existing solar portfolio in terms of technology, its proven wind resource, and location in the central U.S. Moreover, Whirlwind is expected to add incremental distributable cash flow to RNEW immediately. The acquisition of Whirlwind is expected to close before the end of October once its existing project lender has released its liens concurrent with the debt being fully repaid as part of the acquisition. 

 

 

For further information, please contact:

 

 Ecofin Advisors, LLC (Investment Manager)

 Jerry Polacek

 Matthew Ordway

 Prashanth Prakash

 

+1 913 981 1020

 

Stifel (Corporate Broker)

Mark Bloomfield

Nick Donovan

 

 

+44 207 710 7600

 

FTI Consulting (Financial PR)

Matthew O'Keeffe

Mitch Barltrop

Vee Montebello

 

 

+44 797 607 5797

Further information on the Company can be found on its website at https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/.

 

The Company's LEI is 2138004JUQUL9VKQWD21.

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