SDCL Efficiency Income Trust plc (LON:SEIT) has advised that its wholly owned subsidiary, Onyx Renewable Partners LP, has secured a new senior secured credit facility to support the growth of Onyx’s portfolio of distributed energy projects across the United States. As a result of securing this financing, and based on its current growth profile, Onyx is now able to self-fund its upcoming pipeline, which represents a key milestone in Onyx’s evolution as a mature platform.
The $260 million senior secured facility will replace the existing $115 million RCF at Onyx and will directly support the ongoing construction and operation of Onyx’s clean energy infrastructure projects including onsite solar PV and battery storage. The facility was arranged and led byApterra Infrastructure Capital.
Outcomes for SDCL Efficiency Income Trust
The new facility will substantially reduce the future funding requirements from SEIT’s RCF whilst having minimal effect on the look through gearing position of the portfolio as a whole.
The majority of Onyx’s value is underpinned by contracted projects that are relatively straightforward to assess and value. However, a smaller proportion, up to 15% of Onyx’s valuation, is attributed to its platform value, comprising growth potential and development pipeline, which is currently more challenging to capitalise.
Despite receiving a number of proposals from interested parties for the entire entity, in the current market environment, characterised in the United States by elevated policy uncertainty, a disposal of Onyx has proven difficult to achieve on acceptable terms. 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.
Further details and updates on the Company will be available in the upcoming annual report and accounts.
