Gore Street Energy Storage Fund Plc Announces Sale of US Investment Tax Credits
Why we think this is good
The RNS announcement provides details on the sale of the company's US Investment Tax Credits, which is a significant transaction that will enhance the company's balance sheet. The pricing of the sale aligns with previous guidance, suggesting favorable commercial terms. While the news is not transformational, it represents a positive development for the company and its shareholders.
Key Points
- Sale of US Investment Tax Credits for c.£18-19 million of gross proceeds
- Transaction expected to close by end of June 2025 with single upfront payment
- Pricing aligns with previous guidance of $60-80 million for Big Rock and Dogfish ITCs
- Company to provide update on allocation strategy for excess cash
Summary
Gore Street Energy Storage Fund Plc has announced the sale of its US Investment Tax Credits (ITCs) for a consideration of c.£18-19 million of gross proceeds. The transaction is expected to close by the end of June 2025, with the cash received as a single upfront payment shortly thereafter. The pricing aligns with the previous guidance of $60-80 million for both the Big Rock and the Dogfish ITCs.
The company will provide an update on the allocation strategy for the excess cash in due course. The CEO commented that the transaction represents a significant milestone for the company, underscored by the strong pricing and favorable commercial terms secured.