Gore Street Energy Storage Fund has announced increased financing facilities of US$90m for its 200MW Big Rock project in California.
The Fund’s 100% subsidiary, Big Rock ESS Assets LLC, which owns the 400MWh US project, has successfully completed the loan conversion process and upsized the facility from the initial US$60m with First Citizens Bank, following the project successfully completing construction milestones.
This increased facility will finance the remaining capital costs of the Big Rock project.
The Big Rock project has secured a 12-year fixed price contract known as the Resource Adequacy contract, which ensures a stable revenue stream worth over US$14m annually, which is expected to account for up to 40% of total project revenues.
Additionally, the project is expected to benefit from Investment Tax Credits covering up to 30% of eligible capital costs under the 2022 US Inflation Reduction Act, which significantly reduces the project’s capital costs.
In addition, the Fund has also successfully upsized its revolving credit facility (RCF) with Santander Group from £50m to £100m.
The increased facility was arranged by Santander Corporate & Commercial Banking and Santander Corporate Investment Banking acting as Mandate Lead Arrangers.
It remains priced at 300 basis points over SONIA, ratcheting to up to 350 basis points over SONIA subject to the prevailing debt to GAV ratio, with a four-year term extending to 2028, Gore Street said.
This upsized facility builds on the Fund’s existing relationship with Santander and provides additional flexibility to finalise the buildout of the Company’s in-construction assets, including potential duration expansions or the ability to consider building out additional capacity from the Company’s pipeline.
Alex O’Cinneide, chief executive of Gore Street Capital, said: “I am pleased to announce the availability of these two upsized facilities to the Company.
“This ensures enhanced liquidity and the ability to continue to further scale the Company.
“GSF has maintained by far the lowest debt-to-GAV ratio compared to peers (gearing ratio being 11.1% of GAV, based on September-end drawings relative to the last published NAV, June-end 2024).
“We will continue our prudent approach and, despite the availability of these facilities, will ensure the appropriate consideration is given before any drawings are made.
“The Company has continued to execute against the targets set out to investors.
“With the Resource Adequacy contract secured earlier in the month, providing over US$165m of contracted revenue over the life of the contract, and the securing of these facilities, we are well-positioned for the future.
“I look forward to updating the market regularly over the coming months with news of the energisation of the three remaining construction projects, followed by the ITC cash inflow shortly thereafter.”