US Solar Fund in $105m intermediaries fundraiser
US Solar Fund (LON:USF) announced on Wednesday that a placing programme will be conducted over the coming year, including an initial placing, offer for subscription and intermediaries offer of new ordinary shares (initial issue) which has now launched.
The proceeds of the initial issue are expected to be used mainly to fund two transactions which should benefit US Solar Fund by reducing gearing, enhancing dividend coverage, being NAV accretive, all while increasing the company’s size and diversifying its portfolio.
Firstly, by an amount of approximately $82.5 million for the refinancing of the 177MWDC Heelstone Portfolio, reducing the cost and quantum of gearing.
Secondly, by an amount of around $22 million for the acquisition of a further 25% interest in Mount Signal 2, a 200MWDC operating solar plant located in the Imperial Valley of Southern California (MS2), bringing the US Solar Fund’s total ownership of the asset to 50%.
The issue price per new ordinary share will be $1.00 which represents a discount of 4.3% to the closing mid market share price of $1.045 as at 12 April 2021 and a premium of 3.1% to the 31 December 2020 Net Asset Value of $0.97.
New shares issued pursuant to the Initial Issue will be entitled to receive the interim dividend for the three months ended 31 March 2021, the first interim dividend this year. US Solar Fund expects to declare the first 2021 interim dividend in June 2021 for payment in July 2021.
Gill Nott, Chair of US Solar Fund, commented on the announcement:
“US Solar Fund has now delivered on our IPO objectives. As we step up to our target 5.5% dividend we are today asking investors for funds to reduce borrowing costs by refinancing existing debt, and build on our existing stake in California’s Mount Signal 2 solar plant.”
“With a President deeply committed to fiscal policy backing climate change pledges, the United States is now on a clear path to a fully carbon-free transition within 14 years. Delivering on bold and welcome plans in this short time means an urgent need to develop further utility scale solar.”
“The US remains one of the world’s most attractive investment markets for solar power production, with well-established policy frameworks and long-term power purchase agreements. These provide power price certainty for our investment grade corporate offtakers, and reliable cashflows for our investors.”
 announced on Wednesday that a Placing Programme will be conducted over the coming year.){kind=link}