REG-Hazel Renewable Energy VCT 2 plc : Refinancing of portfolio companies <Origin Href="QuoteRef">HR2O.L</Origin>

Gresham House Renewable Energy VCT 2Announcement

07/03/2016 18:30

Hazel Renewable Energy VCT1 plc 
 Hazel Renewable Energy VCT2 plc 
 Refinancing of portfolio companies 
 7 March 2016 
 
 Hazel Renewable Energy VCT1 plc and Hazel Renewable Energy VCT2 plc ("VCTs")
completed a refinancing of solar generation assets located in the United
Kingdom on 2 March 2016 in the form of Senior Secured RPI-linked bilateral
loans. The assets in question, totalling 11.4MW of capacity are owned by the
portfolio companies, AEE Renewables UK 13 Limited, Priory Farm Solar Farm
Limited, Hewas Solar Limited and St Columb Solar Limited ("Borrowers"), and
include ground-mounted solar projects remunerated under the ROC-regime and
residential solar assets remunerated under the UK Feed-in-Tariff regime. 
 
 The Lender is HSBC Bank Pension Scheme UK Limited whose funds are managed by
Hastings Fund Management Limited.  Total funds raised were £13.59 million,
and the interest rate has been set at 250bps above the UK index-linked gilt
maturing in 2024, plus RPI, yielding an initial interest rate of 154bps plus
RPI. The term ranges from 15.5 years to 18.5 years. As a result of this
transaction, over 93% VCTs' solar portfolio is now refinanced, and the VCTs
now own 100% of all the underlying share capital. It is envisaged that a
portion of the proceeds will be used to fund incremental investments, in line
with the VCTs' investment policy, that are expected to generate a
significantly higher return than the cost of debt. The remainder is expected
to be used as liquidity for additional dividend growth and share buybacks.   
 
 The transaction was led by Bozkurt Aydinoglu, Partner of Hazel Capital LLP,
the Investment Adviser. 
 

 This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf
of NASDAQ OMX Corporate Solutions clients. 
 The issuer of this announcement warrants that they are solely responsible for
the content, accuracy and originality of the information contained therein. 
 Source: Hazel Renewable Energy VCT 2 plc via Globenewswire 
 HUG#1992510