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
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
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
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