International law firm CMS has advised Harmony Energy Income Trust plc (HEIT), which invests in battery energy storage systems (BESS) in Great Britain, in relation to the refinancing of its existing debt arrangements.
The new long-term amortising structure, entered into with NatWest plc and Coöperatieve Rabobank U.A., is reflective of the evolving nature of HEIT’s portfolio from "construction" to "operational".
The changes include the amalgamation of the previous £110m term facility and £20m revolving credit facility into a single combined facility of £130m, reduced margin, extension of legal maturity from June 2027 to February 2031, and re-sizing of debt covenant ratios.
Norman Crighton, Chair of Harmony Energy Income Trust plc, said:
"The debt refinancing provides a stable platform for the company to operate in the current lower revenue environment. This continues to enable the company to complete construction of its remaining three projects but now includes a long-term amortisation profile which also provides flexibility for accelerated de-gearing as opportunities arise either through asset sales or revenue outperformance.”
The CMS team was led by Energy Finance partner Nicholas Ross-McCall, supported by Energy partner Philip Duffield. Nick Ross-McCall comments: “We are very pleased to have assisted the Harmony team again on this significant refinancing which allows HEIT to build out the rest of its portfolio of UK BESS projects”.
