Gresham House’s £180 Million New Debt Facility

Eversheds Sutherland has advised Gresham House Energy Storage Fund plc (GRID) on its new £180m debt facility with a syndicate of major international financial institutions.

As a corporate facility funding merchant energy storage projects in the UK, this is the first transaction of its kind for the battery storage market.

The debt facility comprises a £150m capex term facility and a £30m revolving working capital facility. The capex facility also includes an accordion which could increase the total available borrowings up to £380m over time to support further expansion.

Whilst the UK energy storage market has recently seen project finance funding based on underlying revenue contracts with a floor price, this is the first facility of its kind funding projects that rely on merchant trading revenues. The facility was agreed with a syndicate of international financial institutions including Commonwealth Bank of Australia, Lloyds Bank, NatWest and Santander.

Eversheds Sutherland’s multi-disciplinary Energy team led by Caroline Clapham (Picture), Partner, Corporate, and also included: Mark Dennison, Partner, Banking; Peter Greenall, Principal Associate, Project Finance; Ben Brown, Principal Associate, Regulatory; Solomon Olukoya, Associate, Banking; and Julie Chemla, Associate, Corporate.

Involved fees earner: Ben Brown – Eversheds Sutherland; Julie Chemla – Eversheds Sutherland; Caroline Clapham – Eversheds Sutherland; Mark Dennison – Eversheds Sutherland; Peter Greenall – Eversheds Sutherland; Solomon Olukoya – Eversheds Sutherland;

Law Firms: Eversheds Sutherland;

Clients: Gresham House Energy Storage Fund;

Author: Giulia Di Palma