REG - Gore Street Energy - Upsizing of Debt Facilities

Gore Street Energy Storage FundAnnouncement

15/11/2024 07:00

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RNS Number : 3427M  Gore Street Energy Storage Fund PLC  15 November 2024

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
(https://gorestreetcap01-my.sharepoint.com/personal/bpaulden_gorestreetcap_com/Documents/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 (mailto: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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