GCP Infrastructure Investments Ltd on Friday said that it has disposed of an interest in loan notes secured against Blackcraig Wind Farm, generating net cash proceeds of around £31 million.
According to the Jersey-based investment company, which is focused on infrastructure, the disposal was carried out at a 6.4% premium to the valuation of the project as at March 31.
The project, or Blackcraig, is a 52.9 megawatt onshore wind farm, located in Dumfries and Galloway, Scotland. GCP Infrastructure had originally acquired the senior secured loan notes in 2017 from the UK Green Investment Bank.
Proceeds will now be used to prepay drawings under the firm’s revolving credit facility. The disposal, said GCP Infrastructure, represented ‘a positive first step’ in facilitating the execution of its capital allocation policy.
The firm has set a conditional target of releasing £150 million, around 15% of its portfolio, from disposals or refinancings, to materially reduce leverage and return at least £50 million to shareholders before the end of the current calendar year.
‘This disposal reinforces the company’s commitment to its capital allocation policy, prioritising the reduction of leverage in the first instance, through a significant repayment of revolving credit facilities. It will further benefit the risk adjusted return of the portfolio, reducing equity-like exposure and exposure to electricity price movements,’ said Chair Andrew Didham.
Shares in GCP Infrastructure Investments were up 1.3% at 74.37 pence in London on Friday morning.
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