The Board of UKW, is pleased to announce that it has
entered into an agreement to acquire Kildrummy Wind Farm from BayWa
r.e. renewable energy GmbH ("BayWa r.e.") for a total consideration
of £43.3 million (excluding cash balances).
It is also pleased to announce that it has entered
into an agreement to acquire Maerdy Wind Farm from Velocita Energy
Developments Ltd ("Velocita") for a total consideration of £52.9
million (excluding cash balances).
The acquisitions, which are expected to complete on 30
June 2014, 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.
Kildrummy Wind Farm is located in Aberdeenshire and has a
capacity of 18.4 MW and a forecast net load factor of 35.7%.
Kildrummy was developed by Npower Renewables and constructed by
BayWa r.e., a subsidiary of the BayWa Group (the German listed
agriculture, building materials and energy group). It is the third
wind farm that UKW has bought from BayWa r.e. and follows on from
the Cotton Farm and Earl's Hall Farm acquisitions in 2013.
The Maerdy Wind Farm is located in the Rhondda Valley in South
Wales and has a capacity of 24 MW and a net forecast load factor of
32.2%. Maerdy was developed by Renewable Energy Partnerships and
constructed by Velocita, a portfolio company of Riverstone Holdings
LLC. The wind farm is the twelfth investment made by UKW and is the
first from Velocita, the fourth vendor from which UKW will have
Kildrummy and Maerdy were commissioned in May 2013 and
August 2013 respectively. Both will be subject to an adjustment
mechanism that will assess actual energy production over a two-year
period and the acquisition price would be adjusted accordingly.
Both wind farms receive 1 ROC per MWh.
Tim Ingram, Chairman, said "We are pleased to
announce the acquisition of Kildrummy and Maerdy Wind Farms, high
quality additions to our operating portfolio. Our revised
three-bank facility is of significant benefit to the company, and
we look forward to integrating our new assets into the
Following completion, at £135 million, UKW's total
outstanding debt is expected to be approximately 27% of Gross Asset
Value (leverage limit 40%).