Gore Street upsizes Santander credit facility to £50m

June 27, 2023

Gore Street Energy Storage Fund has upsized its existing revolving credit facility (RCF) with Santander from £15 million to £50 million.

Gore Street has successfully secured £35m of incremental debt arranged and syndicated between Santander UK and Banco Santander. Pricing for the £50 million facility remains unchanged at 300 basis points over SONIA, which reflects the average of the interest rates that banks pay to borrow sterling overnight from other financial institutions and other institutional investors.

If the increased RCF is fully utilised, the Gore Street’s debt would be equivalent to around 8 per cent of GAV [gross asset value].

The four-year term of the facility extends until 2027, providing Gore Street with increased financial flexibility, which will be used to support the development of the its construction portfolio and “provides further headroom to explore attractive pipeline opportunities”, a statement said. The facility includes an accordion option to increase beyond £50 million to up to 30 per cent of GAV..

Gore Street is also separately exploring project-level financing options for its Big Rock asset in California. The asset’s revenue profile is expected to be underpinned by a long-term fixed contract, accounting for up to 40 per cent of project revenue.

Alex O’Cinneide, CEO of Gore Street Capital, said: “This reinforces our existing relationship with Santander, which has been supportive since our original facility in 2021. We remain conservative in our use of debt and will maintain an appropriate gearing ratio well within the 30 per cent GAV limit. The additional financial flexibility will allow us to use leverage when appropriate to drive continued success and value for stakeholders.”

Ioana Bozan, director, specialised & project finance, Santander UK commented: ”It has been a pleasure continuing to work with GSF’s [Gore Street’s] investment management team and cementing our relationship, while delivering bespoke, flexible funding to unlock further opportunities.”