Renewable Energy Generation Ltd Sale of two wind farms to BlackRock (9397T)
October 10 2014 - 2:01AM
UK Regulatory
TIDMWIND
RNS Number : 9397T
Renewable Energy Generation Ltd
10 October 2014
10 October 2014
Renewable Energy Generation Ltd
Sale of two wind farms to BlackRock
Renewable Energy Generation Limited ("REG") (AIM: WIND),
announces the sale of its 10MW St.Breock and 8MW Ramsey II wind
farm projects to a fund managed by BlackRock ("BlackRock") for a
total enterprise value of GBP36m.
Under the agreement, BlackRock will assume project debts of
GBP21m, once fully drawn, and REG will receive upfront cash
consideration of GBP13.1m, with a further GBP1.9m payable following
commissioning of the projects in 2015. Construction funding will
continue to be drawn from the existing project finance facility
with ING Bank N.V. ("ING") following the successful financing in
June 2014.
REG will oversee construction of the projects under a
Construction Management Agreement and once operational, will
operate the projects on behalf of BlackRock through an Asset
Management Agreement.
The proceeds will be reinvested into REG's portfolio of
consented projects including Rodbaston (4MW), French Farm (4MW),
Brackagh Quarry (6MW) and Barlborough (0.9MW) as well as further
REG Bio-Power projects, which REG intends to build during 2015.
Andrew Whalley, Chief Executive Officer said:
"We are delighted to continue our strong partnership with
BlackRock through the sale of these two projects as we demonstrate
the value REG is creating through its development strategy.
"REG highly values the relationship it has developed with ING
and is looking forward to working together on future
financings.
"This transaction also marks REG's first appointment as
Construction Manager for BlackRock. With our considerable in-house
experience, this is a role we are well-equipped to fulfil on
similar transactions in future.
"REG will maintain close links with the local communities in
which these projects are based as part of its oversight of the
important community funds, which will support local initiatives
throughout the wind farms' operating lives."
Enquiries:
Renewable Energy Generation Limited
Andrew Whalley, Chief Executive Officer
David Crockford, Finance Director
Ian Lawrence, Communications Manager +44 (0)1483 346550
Smith & Williamson Corporate Finance
Limited
(Nominated Adviser) +44 (0)117 376
Martyn Fraser 2213
Cenkos (Corporate Broker)
Bobbie Hilliam/Max Hartley +44 (0)20 73978900
Broker Profile
Simon Courtenay +44 (0)20 7448
Tamsin Shephard 3244
Notes to editors
Renewable Energy Generation Ltd (REG) is an AIM listed renewable
energy group. Its main business is the development, construction
and operation of wind farms and generating power from refined used
cooking oil.
REG Windpower: based in Truro, Bath and Guildford, UK, it
currently operates 11 wind projects in Cambridgeshire, Cornwall,
County Durham, Yorkshire, Lancashire, Cumbria and Gwynedd, with a
total capacity of 34.7MW as well as 3 projects on behalf of its
partner BlackRock totalling 28MW. REG has around 200MW of projects
in the planning system awaiting a consent.
REG Bio-Power UK Ltd: based in Nottingham, UK: it operates
electricity generation plant powered by fuel recovered from used
cooking oil.
Headquartered in Jersey, REG was admitted to trading on AIM, a
market operated by the London Stock Exchange, in May 2005 (AIM:
WIND).
This information is provided by RNS
The company news service from the London Stock Exchange
END
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