Greencoat UK Wind launches £198m placing to pay down debt, fund acquisitions

Renewable infrastructure fund Greencoat UK Wind said on Friday that it was launching a placing to raise up to £198m to pay down debt and fund acquisitions.

Greencoat said it plans to place up to 150.85 million shares at 131p each, which is a 2.1% discount to the closing share price on Thursday.

"Proceeds from the placing will be used to repay or reduce borrowings under the company's revolving credit facility to allow the company to fund its strong pipeline of acquisition opportunities, including an acquisition in the near term and £162m of previously announced committed acquisitions over the next 12 months," it said.

Greencoat said that following completion of the near-term acquisition, and assuming the maximum amount is raised in the placing, it expects to have outstanding gearing of 28% of gross asset value, of which £700m is fixed rate term debt.