InfraRed Capital Partners to sell 122.6MW wind farm portfolio; KPMG advising – sources

12 Oct 2015 – InfraRed Capital Partners is selling a portfolio of four onshore wind farms in the UK and KPMG is advising on the deal, according to two sources.

A deal is close to being signed and the Australian fund Hastings Funds Management is rumoured to be buying the portfolio, the first source said.

InfraRed declined to comment, and Hastings and KPMG did not respond to requests for comment. 

The portfolio, known as Project Asterix, comprises four onshore wind farms. Reaps Moss, in Lancashire, has a capacity of 10.2MW, and Crook Hill, also in Lancashire, has a capacity of 37.4MW. InfraRed holds 100% of both. Mynydd Bulifa (22.5MW) and Pant y Wal (52.5MW) are both located in South Wales, and InfraRed holds a 50% interest in each.

Pennant Walters, the joint owner of Mynydd Bulifa and Pant y Wal, has stated it will not be pre-empting or seeking to tag along in the transaction, according to the second source.

Forecasted EBITDA for the 12-month period ending in December 2015 is GBP 955,000 for Reaps Moss, and GBP 3,123,000 for Crook Hill. And the forecasted earnings for the 12-month period ending in April 2016 is GBP 4,045,000 for Mynydd Bwlifa, and GBP 8,804,000 for Pant y Wal.

Three of the wind farms in the portfolio have long-term debt facilities in place, according to the second source.

Crook Hill has a 15-year senior debt facility of GBP 54.4m. The debt provider is KFW Ipex.

Mynydd Bwlifa has an 18-year senior debt facility, with a cash sweep from year seven post contract signing, of GBP 28.2m. The debt provider is Barclays.

Pant y Wal has a GBP 62.7m loan that matures in March 2028. The debt provider is Lloyds.

Three of the wind farms have power purchase agreements in place for 100% of their power output, Renewable Obligations Certificates (ROCs), Levy Exemption Certificates (LECs) and embedded benefits, according to the second source.

Crook Hill has a 15-year PPA with Statkraft Markets GmbH, with no fixed price.

Mynydd Bwlifa has a 15-year PPA with BT Plc, with a GBP 54/MWh fixed price for five years.

Pant y Wal has a 15-year PPA with Statkraft Markets GmbH, with a fixed price of GBP 38/MWh for the next five months.

Reaps Moss is in the process of securing a short-term PPA with the flexibility to extend or terminate as per the buyer’s preference, according to the source.

by Katie McQue