Onyx Renewables Secures New Financing Facility
Why we think this is good
The RNS announcement about Onyx Renewables securing a new $260 million senior secured credit facility is a positive development that will support the growth of their portfolio of distributed energy projects. The new financing facility will substantially reduce the future funding requirements from SEIT's RCF, which is a positive for the company's financial position. The majority of Onyx's value is also underpinned by contracted projects, which is a further positive sign. However, the news does not meet the criteria for a 'Very Good' rating, as it does not involve a profit upgrade or trading significantly ahead of expectations.
Key Points
- Onyx Renewable Partners LP has secured a new $260 million senior secured credit facility
- The new facility will substantially reduce the future funding requirements from SEIT's RCF
- The majority of Onyx's value is underpinned by contracted projects that are relatively straightforward to assess and value
Summary
SDCL Efficiency Income Trust plc (SEIT) has announced that its wholly owned subsidiary, Onyx Renewable Partners LP, has secured a new $260 million senior secured credit facility to support the growth of Onyx's portfolio of distributed energy projects across the United States. The new facility will substantially reduce the future funding requirements from SEIT's RCF, while having minimal effect on the look-through gearing position of the portfolio as a whole. The majority of Onyx's value is underpinned by contracted projects, which are relatively straightforward to assess and value.