Bluefield Solar Income Fund (LSE:BSIF)’s sale of its 50% stake in a 112-megawatt portfolio of UK solar assets for £70 million in cash will improve the group’s debt profile, Stifel analysts said.
Proceeds from the sale will be used to pay down a portion of Bluefield Solar's revolving credit facility (RCF) debt, which currently stands at £184 million, and long-term amortising debt of £423 million.
Bluefield's total debt represents 43% of its gross asset value (GAV). Additionally, part of the proceeds will fund the construction of 17MW of development assets.
"The sale of a 50% stake in a portfolio of nine UK sites was expected following the setting up of the long-term strategic partnership at the end of last year. There is no material valuation impact, given the transfer valuation is in line with the March valuations of the assets," stated Stifel analyst Iain Scouller.
The sale marks the signing of phase two of Bluefield's long-term strategic partnership with GLIL, a consortium of UK pension funds investing in core UK infrastructure.
The agreement is conditional on approval under the Planning Act 2008, with a decision expected in mid-August 2024.