Greencoat UK Wind acquires two wind farms for £96m

25th Jun 2014 15:00

FTSE-listed energy group Greencoat UK Wind (UKW) has entered into an agreement to acquire two wind farms for a total of £96.2m.The group is spending £43.3m on buying Aberdeenshire wind farm, Kildrummy, which has a capacity of 18.4 megawatts (MW) and a forecast load factor of 35.7%. The wind farm is the group's third acquisition from BayWa r.e.The second wind farm, Maerdy, which was acquired for £52.9m, is located in Rhonda Valley in South Wales and holds a capacity of 24 MW with a net forecast load of 32.2%.The acquisitions are expected to be completed on June 30th, and will include the prepayment of existing debt, which will be funded through reinvestment of the company's cash resources and its acquisition debt facility provided by RBC, RBS and Santander.Chairman Tim Ingram said: "We are pleased to announce the acquisition of Kildrummy and Maerdy Wind Farms, high quality additions to our operating portfolio."Our revised three-bank facility is of significant benefit to the company, and we look forward to integrating our new assets into the business."Following the completion of the deals, the firm anticipates its outstanding debt to represent about 27% of the value of its assets. The group has set its limit at 40%.As of 14:13 the share price had risen 0.12% to 106.5p.WS