SDCL Energy Efficiency subsidiary secures new $260 million facility
SDCL Energy Efficiency Income Trust PLC on Wednesday said subsidiary Onyx Renewable Partners LP has entered into a new senior secured credit facility.
SDCL invests in assets in the energy efficiency sector, such as electric vehicle charging infrastructure and geothermal and biogas projects.
The $260 million facility will support the growth of Onyx’s portfolio of distributed energy products across the US, and will allow Onyx to self-fund its upcoming pipeline - ‘a key milestone in Onyx’s evolution as a mature platform’, SDCL said.
Arranged by Apterra Infrastructure Capital, the new facility will replace the existing $115 million revolving credit facility at Onyx.
The funding will also ‘substantially reduce’ the group’s future funding requirements, said SDCL.
‘Despite receiving a number of proposals from interested parties for the entire entity, in the current market environment, characterised in the US by elevated policy uncertainty, a disposal of Onyx has proven difficult to achieve on acceptable terms,’ the company said.
‘Rather than continuing with its formal, externally advised disposal process for Onyx, the investment manager is pursuing selected alternatives for a privately negotiated transaction, including but not limited to equity capital partnerships for Onyx’s existing contracted portfolio. A limited number of parties have been carefully selected to enter into private negotiations.’
Up to 15% of Onyx’s valuation is attributed to its platform value, comprised of growth potential and development pipeline, which ‘is currently more challenging to capital’, said SDCL.
Shares in SDCL Energy Efficiency Income Trust were up 3.0% at 49.00 pence each in London on Wednesday morning. The stock remains down 25% over the past year.
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