AES to sell 100% of equity stakes in four UK wind projects

AES has agreed to sell 100% of its equity stakes in four UK wind projects for $160m.

The transaction, which is expected to be completed in the third quarter of 2014, was signed with SYND Holdco, a joint venture of Greencoat UK Wind and Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities.

The agreement covers the Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill wind farms, which have a total generation capacity of 87.5MW.

Located near Goole in the East Riding of Yorkshire, the 20.5MW Sixpenny Wood wind farm has been operational since July 2013.

The 16.4MW Yelvertoft facility, which is situated east of Rugby in Northamptonshire, went live in July 2013.

The 22MW North Rhins wind farm is situated on the North Rhins peninsula, west of Stranraer in Dumfries and Galloway. It has been operational since December 2009.

Situated west of Eyemouth in the Borders, the 28.6MW Drone Hill facility started commercial operations in August 2012.

AES president and chief executive officer Andrés Gluski said: "This transaction demonstrates the strong interest for wind projects in the United Kingdom.

"Although we believe that this transaction represents compelling value for AES, we are continuing to develop a pipeline of 250 MW of wind projects in Scotland."

Greencoat UK Wind will acquire a 51.6% stake in the wind farms and Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities will hold the remaining 48.4% interest.

Greencoat UK Wind chairman Tim Ingram said: "We are pleased to increase our investment portfolio to 16 UK wind farms with net generating capacity of 271.5MW.

"AES is the fifth seller of wind farms to UKW, a testament to the company’s independence and to its ability to be selective in its acquisitions."

Source:
http://newsroom.aes.com/phoenix.zhtml?c=76149&p=irol-newsArticle&ID=1959681
AES Sells 100% of its Equity Interests in 87.5 MW of Operating Wind Projects in the United Kingdom for $160 Million
ARLINGTON, Va.–(BUSINESS WIRE)–Aug. 20, 2014– The AES Corporation (NYSE: AES) announced today that it has entered into an agreement with SYND Holdco Limited, a joint venture of Greencoat UK Wind PLC and Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A. to sell 100% of its equity interests in four operating wind projects in the United Kingdom, totaling 87.5 MW, for $160 million, subject to customary purchase price adjustments. The transaction is expected to close in the third quarter of 2014.
"This transaction demonstrates the strong interest for wind projects in the United Kingdom," said Andrés Gluski, AES President and Chief Executive Officer. "Although we believe that this transaction represents compelling value for AES, we are continuing to develop a pipeline of 250 MW of wind projects in Scotland."
This transaction includes four operating wind projects in the United Kingdom: 28.6 MW Drone Hill; 22 MW North Rhins; 20.5 MW Sixpenny Wood; and 16.4 MW Yelvertoft. The book value of AES’ equity interests in these four projects is approximately $100 million. These projects were expected to contribute approximately $10 million to AES’ Net Income (after tax) in 2015. As a result of the transaction, a total of $134 million in non-recourse debt on AES’ Balance Sheet as of June 30, 2014 will be removed.

http://www.greencoat-ukwind.com/media/latest-news/greencoat-uk-wind-plc-acquisition-of-four-wind-farms-from-aes.aspx
Greencoat UK Wind PLC: Acquisition of four wind farms from AES
20 August, 2014
GREENCOAT UK WIND PLC
Acquisition of Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms
Increases Greencoat UK Wind’s net generating capacity to 271.5 MW

The Board of UKW is pleased to announce that it has entered into an agreement to acquire a 51.6% stake in Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from subsidiaries of The AES Corporation ("AES"), a global power company, for a total consideration of £90.6 million.
The acquisitions, which are expected to complete on 22 August, will include the prepayment of existing indebtedness and will be funded through reinvestment of UKW’s cash resources and its acquisition debt facility provided by RBC, RBS and Santander.
Sixpenny Wood Wind Farm is located near Goole in the East Riding of Yorkshire and has a total capacity of 20.5 MW, a forecast net load factor of 31.0% and has been operational since July 2013.
Yelvertoft Wind Farm is located east of Rugby in Northamptonshire and has a total capacity of 16.4 MW, a forecast net load factor of 28.6% and has been operational since July 2013.
North Rhins Wind Farm is located on the North Rhins peninsula, west of Stranraer in Dumfries and Galloway and has a total capacity of 22.0 MW, a forecast net load factor of 37.8% and has been operational since December 2009.
Drone Hill Wind Farm is located west of Eyemouth in the Borders and has a total capacity of 28.6 MW, a forecast net load factor of 23.7% and has been operational since August 2012.
All four wind farms were developed and constructed by AES and receive 1 ROC per MWh.
Tim Ingram, Chairman, said "We are pleased to announce the acquisition of Sixpenny Wood, Yelvertoft, North Rhins and Drone Hill Wind Farms from AES and to increase our investment portfolio to 16 UK wind farms with net generating capacity of 271.5MW. AES is the fifth seller of wind farms to UKW, a testament to the Company’s independence and to its ability to be selective in its acquisitions."
Following completion, at £225 million, UKW’s total outstanding debt is expected to be approximately 38% of Gross Asset Value (leverage limit 40%).
As previously announced, the Company will be paying a dividend of £10.6m (3.08p per share) on 29 August 2014 in respect of the six months to 30 June 2014.
Swiss Life Funds (Luxembourg) Global Infrastructure Opportunities S.C.A., a fund managed by Swiss Life Asset Managers will co-invest alongside UKW and acquire the remaining 48.4%. The acquisitions will be made through a joint holding company. Colville Partners advised.