REG - Ecofin US Renewables - Strategic Review

Ecofin US Renewables Infrastructure TrustAnnouncement

08/09/2023 07:00

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RNS Number : 7853L  Ecofin US Renewables Infrastr.Trust  08 September 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF
THE MARKET ABUSE REGULATION EU 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY
VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

 

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE
OR IN PART, TO US PERSONS OR INTO OR WITHIN THE UNITED STATES, AUSTRALIA,
CANADA OR JAPAN, OR ANY OTHER JURISDICTION WHERE, OR TO ANY OTHER PERSON TO
WHOM, TO DO SO WOULD BE UNLAWFUL. THE INFORMATION CONTAINED HEREIN DOES NOT
CONSTITUTE OR FORM PART OF ANY OFFER TO SELL OR ISSUE, OR ANY SOLICITATION OF
ANY OFFER TO PURCHASE, SUBSCRIBE FOR OR OTHERWISE ACQUIRE, ANY INVESTMENTS IN
ANY JURISDICTION.

 

8 September 2023

 

ECOFIN U.S. RENEWABLES INFRASTRUCTURE TRUST PLC

(the "Company" or "RNEW")

 

Strategic Review

 

The U.S. renewable energy sector continues to offer expanding opportunities
for stable investment and growth. RNEW plays an important role in the drive
for a more sustainable future in the U.S. as an owner and operator of
renewable energy assets. At the same time, the Board is conscious of the
challenges the Company faces as a UK investment trust, including size and
liquidity.

 

The last annual report also noted that consistent with good governance, the
Board was open to exploring all options for the future of the Company, and in
connection with this, approaches were made to another listed closed ended
investment company in the sector with a view to combining the Company and the
other vehicle through a scheme of reconstruction under Section 110 of the
Insolvency Act 1986 ("Section 110") and rollover, to create a larger company
with greater liquidity. However, the Company's proposal was not successful.
The Company subsequently received interest from a different listed closed
ended investment company within the wider renewables sector regarding a
Section 110 combination, however the Board did not consider the proposal to be
in the best interests of shareholders for a number of reasons.

 

Given the wide discounts impacting RNEW and other alternatives investment
trusts, and the unfavourable short-term prospects to raise new equity, the
Board has decided to undertake a review of the Company's strategy in order to
maximise value for shareholders. The review will centre on a sale of the
Company's assets. If successful, and subject to the terms of such disposal, it
is expected to return cash to shareholders in connection with a winding up of
the Company or similar transaction.

 

The Board is pleased to appoint Marathon Capital as financial adviser in
conjunction with a potential transaction or transactions. Marathon Capital is
a Chicago headquartered industry leading advisory firm with a central focus on
sustainable energy.

 

The Board will make further announcements when appropriate.

 

There can be no certainty as to the outcome of the strategic review or any
asset sale process, nor whether any potential transaction or transactions
arising could be successfully completed or the valuation at which it or they
could be completed. In addition, should a transaction arise that would involve
the sale of the Company's assets, it is expected that the implementation of
such transaction will be conditional upon shareholder approval at a general
meeting of the Company.

 

The person responsible for arranging the release of this announcement on
behalf of the Company is Martin Darragh.

 

 

For further information, please contact:

 

 Ecofin Advisors, LLC (Investment Manager)                                                                +1 913 981 1020

 Edward Russell

 Eileen Fargis

 Jason Benson

 Michael Hart

 Peel Hunt LLP (Joint Corporate Broker)                                                                   +44 20 7418 8900

 Liz Yong

 Luke Simpson

 Huw Jeremy

 Stifel (Joint Corporate Broker)                                                                          +44 20 7710 7600

 Edward Gibson-Watt

 Rajpal Padam

 Madison Kominski

 Marathon Capital (Financial
 Adviser)

                                                                                                        +1 646 823 1650
 Ammad Faisal

 Gaurav Khanna

                                                                                                        +44 7770 496 261
 Chris Shaw
 Apex Listed Companies Services (UK) Limited (Company                                                     +44 20 3327 9720
 Secretary)

 Martin Darragh

 Maria Matheou
 FTI Consulting (Financial PR)                                                                            +44 7976 075 797

 Matthew O'Keeffe

 Mitch Barltrop

 Vee Montebello

 

Further information on the Company can be found on its website
at https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/
(https://uk.ecofininvest.com/funds/us-renewables-infrastructure-trust-plc/) .

 

The Company's LEI is 2138004JUQUL9VKQWD21.

 

Marathon Capital Ltd is authorised and regulated by the Financial Conduct
Authority and Marathon Capital Markets, LLC is a broker-dealer registered with
the U.S. Securities and Exchange Commission and regulated by the Financial
Industry Regulatory Authority Inc.

 

 

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