$60 Million Finance Facility for 200MW California Project
24 October 2023
Gore Street Energy Storage Fund plc, the internationally diversified energy storage fund, is pleased to announce that Big Rock ESS Assets, LLC, GSF's 100% subsidiary and owner of the 200MW / 400MWh Big Rock project in California, has secured an initial $60m loan financing from First Citizens Bank. The loan will be used to fund the remaining capital costs of the Big Rock project, which, to date, has been funded with GSF equity. The loan allows GSF to allocate capital to other portfolio projects and to maintain its portfolio diversification standards. The loan is for an initial 3-year term and is expected to be refinanced with longer-term project finance once the project becomes operational.
As disclosed in previous RNS announcements, the project is expected to be underpinned by a standard California long-term fixed revenue contract for up to 40% of project revenues. Big Rock also benefits from Investment Tax Credits for at least 30% of eligible capital costs under the 2022 US Inflation Reduction Act.
Alex O'Cinneide, CEO of Gore Street Capital Limited, the Company's investment manager, commented:
"We are very pleased to have secured debt financing for the Big Rock project, which exhibits a differentiated revenue profile given the higher level of contracted revenues in CAISO - one of the most attractive energy markets globally. The financing will be drawn against our funding and construction plan as we continue to work closely with our various project stakeholders, including battery suppliers and integrators, to deliver the project, which remains on schedule. In this context, we are delighted to announce another key stakeholder relationship with First Citizens, one of the leading lenders in the renewables space in the US with a strong background in delivering large-scale projects such as Big Rock."
Mike Lorusso, head of First Citizens Bank's Energy Group:
"Big Rock's strategic location and use of commercially proven Tier 1 technology makes it a valuable addition to Gore Street Energy Storage Fund's portfolio. We appreciated working with the company's highly experienced investment management team in structuring this unique financing to support completion of this attractive project."
For further information:
Gore Street Capital Limited
Alex O'Cinneide / Paula Travesso Tel: +44 (0) 20 3826 0290
Shore Capital (Joint Corporate Broker)
Anita Ghanekar / Rose Ramsden / Iain Sexton (Corporate Advisory) Tel: +44 (0) 20 7408 4090
Fiona Conroy (Corporate Broking)
J.P. Morgan Cazenove (Joint Corporate Broker) Tel: +44 203 493 8000
William Simmonds / Jérémie Birnbaum (Corporate Finance) Tel: +44 (0) 20 3493 8000
Buchanan (Media Enquiries)
Charles Ryland / Henry Wilson / George Beale Tel: +44 (0) 20 7466 5000
Email: [email protected]
Notes to Editors
About Gore Street Energy Storage Fund plc
Gore Street is London's first listed and internationally diversified energy storage fund dedicated to the low-carbon transition. It seeks to provide Shareholders with sustainable returns from their investment in a diversified portfolio of utility-scale energy storage projects. In addition to growth through increasing operational capacity and a considerable pipeline, the Company aims to deliver consistent and robust dividend yield as income distributions to its Shareholders.