REG - Gore Street Energy - $60m Finance Facility for California Project

Gore Street Energy Storage FundAnnouncement

24/10/2023 07:00

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RNS Number : 0075R  Gore Street Energy Storage Fund PLC  24 October 2023

 
 
24 October 2023

Gore Street Energy Storage Fund plc

(the "Company" or "GSF")

$60 Million Finance Facility for 200MW California Project

 

 

Gore Street Energy Storage Fund plc, the internationally diversified energy
storage fund, is pleased to announce that Big Rock ESS Assets, LLC, GSF's 100%
subsidiary and owner of the 200MW / 400MWh Big Rock project in California, has
secured an initial $60m loan financing from First Citizens Bank.  The loan
will be used to fund the remaining capital costs of the Big Rock project,
which, to date, has been funded with GSF equity. The loan allows GSF to
allocate capital to other portfolio projects and to maintain its portfolio
diversification standards. The loan is for an initial 3-year term and is
expected to be refinanced with longer-term project finance once the project
becomes operational.

As disclosed in previous RNS announcements, the project is expected to be
underpinned by a standard California long-term fixed revenue contract for up
to 40% of project revenues.  Big Rock also benefits from Investment Tax
Credits for at least 30% of eligible capital costs under the 2022 US Inflation
Reduction Act.

 

Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment
manager, commented:

"We are very pleased to have secured debt financing for the Big Rock project,
which exhibits a differentiated revenue profile given the higher level of
contracted revenues in CAISO - one of the most attractive energy markets
globally. The financing will be drawn against our funding and construction
plan as we continue to work closely with our various project stakeholders,
including battery suppliers and integrators, to deliver the project, which
remains on schedule. In this context, we are delighted to announce another key
stakeholder relationship with First Citizens, one of the leading lenders in
the renewables space in the US with a strong background in delivering
large-scale projects such as Big Rock."

 

Mike Lorusso, head of First Citizens Bank's Energy Group:

"Big Rock's strategic location and use of commercially proven Tier 1
technology makes it a valuable addition to Gore Street Energy Storage Fund's
portfolio. We appreciated working with the company's highly experienced
investment management team in structuring this unique financing to support
completion of this attractive project."

 

For further information:

 

Gore Street Capital Limited

Alex O'Cinneide / Paula Travesso
 
Tel: +44 (0) 20 3826 0290

Shore Capital (Joint Corporate Broker)

Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory)
              Tel: +44 (0) 20 7408 4090

Fiona Conroy (Corporate Broking)

J.P. Morgan Cazenove (Joint Corporate Broker)
                            Tel: +44 203 493 8000

William Simmonds / Jérémie Birnbaum (Corporate Finance)
                       Tel: +44 (0) 20 3493 8000

 

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 (https://www.gsenergystoragefund.com/)

 

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