15 November
2024
Gore
Street Energy Storage Fund plc
(the
"Company" or "GSF")
Gore Street Energy Storage Fund
Announces Upsizing of Debt Facilities
Gore Street Energy
Storage Fund plc, the internationally diversified energy storage
fund, is pleased to announce increased financing facilities at both
the project level and the Company level. Details of the two upsized
facilities are provided below.
Big Rock
Project Finance Facility Upsized to $90 Million
Gore Street Energy Storage Fund's 100%
subsidiary, Big Rock ESS Assets LLC, which owns the 200MW / 400MWh
Big Rock project in California, has successfully completed the loan
conversion process and upsized the facility from the initial $60.0
million to a $90.0 million facility with First Citizens Bank,
following the project successfully completing construction
milestones. This increased facility will finance the remaining
capital costs of the Big Rock project. The Big Rock project has
secured a 12-year fixed price contract known as the Resource
Adequacy contract, which ensures a stable revenue stream worth over
$14 million annually, which is expected to account for up to 40% of
total project revenues. Additionally, the project is expected to
benefit from Investment Tax Credits covering up to 30% of eligible
capital costs under the 2022 US Inflation Reduction Act, which
significantly reduces the project's capital costs.
Revolving
Credit Facility upsized to £100 Million
The Company has also successfully upsized its
revolving credit facility ("RCF") with Santander Group from £50.0
million to £100.0 million. The increased £100.0 million facility
was arranged by Santander Corporate & Commercial Banking and
Santander Corporate Investment Banking acting as Mandate Lead
Arrangers. It remains priced at 300 basis points over SONIA,
ratcheting to up to 350 basis points over SONIA subject to the
prevailing debt to GAV ratio, with a four-year term extending to
2028. This upsized facility builds on the Company's existing
relationship with Santander and provides additional flexibility to
finalise the buildout of the Company's in-construction assets,
including potential duration expansions or the ability to consider
building out additional capacity from the Company's pipeline.
Alex
O'Cinneide, CEO of Gore Street Capital,
commented:
"I am pleased to announce the availability of
these two upsized facilities to the Company. This ensures enhanced
liquidity and the ability to continue to further scale the
Company.
GSF has maintained by far the lowest
debt-to-GAV ratio compared to peers (gearing ratio being 11.1% of
GAV, based on September-end drawings relative to the last published
NAV, June-end 2024). We will continue our prudent approach and,
despite the availability of these facilities, will ensure the
appropriate consideration is given before any drawings are
made.
The Company has continued to execute against
the targets set out to investors. With the Resource Adequacy
contract secured earlier in the month, providing over $165.0
million of contracted revenue over the life of the contract, and
the securing of these facilities, we are well-positioned for the
future. I look forward to updating the market regularly over the
coming months with news of the energisation of the three remaining
construction projects, followed by the ITC cash inflow shortly
thereafter."
For further
information:
Gore Street Capital
Limited
Alex O'Cinneide / Paula Travesso /
Ben Paulden
Email:
ir@gorestreetcap.com Tel:
+44 (0) 20 3826 0290
Shore Capital (Joint Corporate
Broker)
Anita Ghanekar / Sophie Collins
(Corporate Advisory)
Tel: +44 (0) 20 7408 4090
Fiona Conroy (Corporate
Broking)
J.P. Morgan Cazenove (Joint
Corporate Broker)
William Simmonds / Jérémie Birnbaum
(Corporate Finance)
Tel: +44 (0) 20 3493 8000
Burson Buchanan (Media
Enquiries)
Charles Ryland / Henry Wilson /
George Beale
Tel: +44 (0) 20 7466 5000
Email: gorestreet@buchanan.uk.com
Notes to Editors
About Gore Street Energy Storage
Fund plc
Gore Street is London's first listed
and internationally diversified energy storage fund dedicated to
the low-carbon transition. It seeks to provide Shareholders with
sustainable returns from their investment in a diversified
portfolio of utility-scale energy storage projects. In addition to
growth through increasing operational capacity and a considerable
pipeline, the Company aims to deliver consistent and robust
dividend yield as income distributions to its
Shareholders.
https://www.gsenergystoragefund.com