02 May 2019
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Launch of an Initial Placing and Initial Offer for Subscription Under a New Share Issuance Programme

Greencoat UK Wind today announces a new programme of share issuance (the "Share Issuance Programme") to be conducted over the next 12 months through a number of tranches, with the initial placing ("Initial Placing") and the initial offer for subscription ("Initial Offer for Subscription") launching today (the "Initial Tranche"). The prospectus ("Prospectus") relating to the Share Issuance Programme is expected to be published shortly.

Under the Share Issuance Programme, the Company may issue up to 500 million new ordinary shares over the next 12 months. The net proceeds from the Initial Tranche are expected to be used to pay back amounts owed under the Company's Facility Agreement (as defined in the Prospectus). The net proceeds from each subsequent tranche under the Share Issuance Programme will be used to (i) pay back amounts outstanding under the Facility Agreement and/or (ii) apply proceeds directly to make further investments.

Tim Ingram, Chairman of the Company, said:

Following our investment in the high quality Stronelairg and Dunmaglass wind farms, and the imminent purchase of the Tom nan Clach wind farm, the share issuance programme launched today will enable the Company to pay down debt and continue to capitalise on the strong pipeline of acquisition opportunities in the UK wind farm secondary market.

Given the size and scale the Company has attained over recent years, UKW is well placed to make value-accretive acquisitions and further enhance returns for our shareholders.

Background to, and Reasons for, the Share Issuance Programme

Following its successful initial public offering in March 2013, the Company has continued to deliver on its objectives and strategy, achieving the following key milestones:

  • Paid or declared dividends of £260.9 million (38.2 pence per share)

  • Dividend inflated in line with RPI each year (6.94 pence per share target for 2019)

  • Grown NAV to 123.2 pence per ordinary share since listing to 31 March 2019

  • Delivered a Total Shareholder Return of 95.5% for the period since listing to 30 April 2019

  • Made 28 additional wind generation asset investments increasing the Company's total net generating capacity from 127MW to 950MW and Gross Asset Value ("GAV") to £2.3 billion across 34 operating wind farms

  • Generated 6.0TWh of power for period since listing to 31 December 2018

Following the completion of the £452 million investment in the Stronelairg and Dunmaglass wind farms announced on 28 March 2019, gearing is £794 million, equivalent to 34 per cent. of GAV.

The Board believes that the Share Issuance Programme will offer significant benefits for all Shareholders and the Company:

  • Proceeds will be used to reduce borrowings under the Company's Facility Agreement

  • Enable the Company to pursue further attractive investment opportunities

  • Expanding the Company's equity capital will further increase the trading liquidity of UKW's shares

  • Reduce the Company's ongoing expense ratio due to the economy of scale

  • As both the Initial Tranche and any subsequent issues will be priced above the prevailing NAV per share, the Share Issuance Programme will be NAV accretive

The Initial Tranche

  • Under the Share Issuance Programme, subject to approval by Shareholders, UKW will issue new ordinary shares by way of the Initial Placing and Initial Offer for Subscription at an issue price of 133 per share:

  • The issue price of 133p represents a discount of 5.2% to the closing share price on 1 May 2019 and a premium of 9.5% to the last reported NAV of 121.47p (as at 31 March 2019) (both adjusted for the payment of the 1.735p dividend on 24 May 2019)

  • The Initial Tranche, and all subsequent tranches, are expected to be accretive to the prevailing net asset value per share of the Company, after costs.

  • The Initial Tranche is expected to close later in May; the full timetable will be published with the prospectus shortly

  • The net issue proceeds from the Initial Tranche are expected to be used to pay back amounts owed under the Company's Facility Agreement.

The timetable for the Initial Tranche is expected to be published with the prospectus shortly.