Acquisition and Placing

RNS Number : 2234U

Bluefield Solar Income Fund Limited

14 October 2014

 



Bluefield Solar Income Fund Limited

14 October 2014

Proposed placing programme issue

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, THE UNITED STATES OF AMERICA (INCLUDING ITS TERRITORIES AND POSSESSIONS, ANY STATE OF THE UNITED STATES AND THE DISTRICT OF COLUMBIA), AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, SOUTH AFRICA, IN ANY MEMBER STATE OF THE EEA (OTHER THAN THE UNITED KINGDOM) OR IN ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL

Bluefield Solar Income Fund Limited (the "Company") is pleased to announce that it has entered into exclusive arrangements to acquire three assets with a combined energy capacity of 62 Megawatts Peak ("MWp"). These three assets are in addition to 32 MWp of capacity to which the Group has already contractually committed under the RBS Acquisition Facility ("Facility").

The combined six asset portfolio of 94 MWp will be acquired for a consideration of £106 million including fees and working capital. All are expected to qualify under the 1.4 Renewable Obligation Scheme ("RO") support banding. In addition the Company's Investment Adviser is in advanced negotiations to acquire a further 39 MWp of pipeline for total consideration of £44 million.

Accordingly, and in the context of the Placing Programme established on 3 October 2014, the Board hereby announces its intention to issue up to 150 million new Ordinary Shares by way of a placing of new Ordinary Shares under the Placing Programme to raise gross proceeds of up to approximately £150 million. The Board intends to use the net proceeds of such issue, firstly, to prepay amounts outstanding under the Acquisition facility and, secondly, to finance further acquisitions including those noted above.

It is expected that the placing will commence on Monday 3 November 2014 and will remain open until Thursday 13 November 2014. The new Ordinary Shares will be issued at a premium to the Net Asset Value per Ordinary Share at least sufficient to cover the costs and expenses of the placing. The issue price will be based on the Net Asset Value as at 30 September 2014 which will be announced via RNS prior to the commencement of the placing.

In conjunction with the proposed placing the Board is also considering the timing of future dividend distributions with the objective of ensuring that any issue of new Ordinary Shares will not be dilutive to the dividend attributable to existing ordinary shareholders. The Board is therefore considering bringing forward the declaration and payment date of the first interim dividend in respect of the year to 30 June 2015 and, in addition thereafter moving to a quarterly dividend schedule.

The Company can confirm that it continues to expect to deliver against its target dividend of 7 pence per ordinary share in respect of the Company's second financial year, with the intention of this rising annually with RPI thereafter.

An announcement setting out further details of the placing will be made in due course.

Capitalised terms used but not defined in this announcement will have the same meaning as set out in the Circular to shareholders dated 9 September 2014 and the Prospectus dated 3 October 2014.

Enquiries:

James Armstrong / Mike Rand / Giovanni Terranova

Bluefield Partners LLP - Company Investment Adviser

Tel: [phone]

Tod Davis / David Benda

Numis Securities Limited - Company Broker

Tel: [phone]

Kevin Smith

Heritage International Fund Managers Limited - Company Secretary & Administrator

Tel: [phone]

Note to editors

About Bluefield Solar Income Fund Limited (BSIF)

BSIF is a Guernsey-registered investment company focusing on large scale agricultural and industrial solar assets. It raised gross proceeds of £130 million in July 2013 through an initial public offering of shares on the main market of the London Stock Exchange. It raised a further £13 million in February, 2014 in an oversubscribed placement. In June, 2014, it agreed a three-year revolving credit facility with Royal Bank of Scotland plc, for up to £50 million.

BSIF seeks to provide shareholders with an attractive return, principally in the form of semi-annual income distributions, by investing in a diversified portfolio of solar energy assets, each located within the UK, with a focus on utility scale assets and portfolios on greenfield, industrial and/or commercial sites.

About Bluefield Partners LLP (Bluefield)

Bluefield was established in 2009 as a specialist investor into solar energy. Bluefield's team has a proven track record in the selection, acquisition and supervision of large scale energy and infrastructure assets in the UK and Europe.

 

The London based team have been involved in over £500m solar energy transactions in both the UK and Europe since 2008, including over £235 million in the UK since December 2011. Bluefield has led the acquisitions, and currently advises on, over 50 UK based solar assets.

 

Bluefield was appointed Investment Adviser to the Company in June 2013.

 

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