TIDMGOOD
RNS Number : 3819U
Good Energy Group PLC
01 April 2021
Good Energy Group PLC
("Good Energy" or "the Company")
Restructuring of renewable generation debt
Good Energy Group PLC (AIM: GOOD), the 100% renewable
electricity supplier and innovative energy services provider,
announces the restructuring of the financing on its renewable
generation asset portfolio to consolidate and simplify funding
facilities, that together with a strong net cash position gives the
Company greater capital flexibility going forwards.
Restructuring of generation assets financing
At the 30th June 2020, the latest balance sheet reporting date
prior to this restructuring, Good Energy had two secured bank loans
against its 50MW of wind and solar assets, comprising:
-- GBP5.1m secured against Good Energy's Delabole wind farm
financed by the Cooperative Bank ("Co-Op");
-- GBP33.2m secured against the rest of the solar and wind asset
portfolio, financed by funds managed by Gravis Capital Management
Limited ("Gravis").
Today's refinancing and restructuring consolidates the
generation assets into one portfolio that will be solely financed
by funds managed by Gravis and will amortise through to June 2035.
The cost of settling the Co-Op debt is de minimis.
Significant liquidity and cash flow benefits
Whilst headline gearing will not change on completion, the
restructuring and refinancing provide a number of real benefits to
Good Energy, both short term and long term.
Initially, it will provide GBP7.8m of unrestricted cash on
completion, of which:
o GBP4.7m relates to the release of various reserve accounts and
other restricted cash balances which form part of the existing
facilities;
o GBP3.1m of additional debt raised against the Delabole
windfarm, associated with mirroring the terms of Delabole in line
with the rest of the portfolio.
Longer term, the transaction also provides on-going improved
visibility of cash flows, with a rebalancing of the performance
covenants over the entire generation portfolio. This frees up
future cash generated by the generation portfolio to be utilised by
the Company.
The upfront cash provided, combined with existing strong levels
of cash on the balance sheet gives the Company the ability to
wholly repay Good Energy Bonds II. It is anticipated that this will
be completed during FY2022. At the end of December 2020, the
outstanding capital on Good Energy Bonds II was GBP16.8m, while
associated interest costs are GBP0.8m per annum.
Further Transaction Details
Today's refinancing and restructuring consolidates the
generation assets into one portfolio that will be solely financed
by Gravis through a revised facility of GBP39.8m and which will be
amortised to June 2035. Good Energy Generation Asset No. 1, a
wholly owned subsidiary of Good Energy, has entered into an Amended
and Restated Loan Facilities Agreement ("ARA LFA") with its
incumbent lender GCP Green Energy 1 Limited. In addition to the
restructuring of the existing facility and terms, the ARA LFA
provides Good Energy with an additional GBP7.1m in bank loans to
prepay its outstanding loan facility with the Cooperative Bank PLC
("Co-Op Facility"), whilst consolidating all generation assets
under one financing facility. The Co-Op Facility was previously
used to finance the 9MW Delabole windfarm on a standalone
basis.
Gravis is the investment advisor to GCP Infrastructure
Investments Limited, a FTSE 250 investment company listed on the
Main Market of the London Stock Exchange that focuses on
investments in debt secured against UK infrastructure projects.
Juliet Davenport, Founder and Chief Executive Officer of Good
Energy, said:
"This transaction provides the business with simplicity and
clarity over the funding of our high performing generation
portfolio and delivers greater capital flexibility and further
underpinning our balance sheet resilience.
We are really pleased with the underlying performance of the
group and look forward to building on these successes in 2021 as we
continue to invest for the future"
Good Energy was advised on the transaction by KPMG (financial),
Burgess Salmon (legal), PKF (tax) and TLT (property).
Gravis was advised on the transaction by CMS Cameron McKenna
Nabarro Olswang LLP (legal), K2 Management (technical) and PMC
Treasury (hedging).
Enquiries:
Good Energy Group PLC Email: press@goodenergy.co.uk
Juliet Davenport, Chief Executive Email: press@zap-map.com
Charles Parry, Investor Relations Phone: +44 (0) 7718
Luke Bigwood, Communications 671003
Investec Bank plc (Nominated Adviser Tel: +44 (0) 20 7597
and Joint Broker) 5970
Jeremy Ellis
Sara Hale
Canaccord Genuity Limited (Joint Broker) Tel: +44 (0) 20 7523
Henry Fitzgerald - O'Connor 4617
Georgina McCooke
Notes to editors:
About Good Energy www.goodenergy.co.uk
Good Energy is a generator and supplier of 100% renewable power
and an innovator in energy services. It currently owns two wind
farms, six solar farms and sources electricity from a community of
1,600 independent UK generators.
Since it was founded 20 years ago, the company has been at the
forefront of the charge towards a cleaner, distributed energy
system. Its mission is to support UK households and businesses
generate, store and share clean power.
Good Energy is recognised as a leader in this market, through
our green kite accreditation with the London Stock Exchange and as
a top rated Green energy supplier by Which?.
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END
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