Linklaters advised the lenders on the £68.4 million holdco financing of the operational Brockloch Rig and Crystal Rig III onshore wind farms in Scotland.

The Fred. Olsen Renewables group, who originally indirectly owned 100% of both wind farms, sold a 49% indirect stake in both wind farms to Aviva Investors’ infrastructure platform shortly prior to the completion of the financing. Fred. Olsen were initially exploring a more typical portfolio financing structure with debt being lent at the project company level, similar to the 2013 financing of the Mid Hill and Rothes II onshore wind farm financing on which Linklaters also advised. After having considered its various structuring options, the group chose to undertake a shareholding financing of their 51% interest in the portfolio, which resulted in moving the debt up to the 51% shareholder.

The facilities included a term loan facility and a revolving debt service reserve facility. The lenders were MUFG Bank Ltd., Sumitomo Mitsui Banking Corporation and Siemens Bank GmbH, London Branch.

Richard Coar, Energy and Infrastructure partner at Linklaters, said:

    “This is an exciting transaction in the renewables sector, which continues the trend of using shareholder financings as a vehicle for financing increasing classes of renewable assets as well as portfolios.”

The Linklaters team was led by Energy and Infrastructure partner Richard Coar and included associates Arani Chakrabarty and Madeline Collins.