Funds and accounts managed by the Energy & Infrastructure Group of TCW (TCW) has agreed purchase of a 50 percent equity stake in GLID Wind Farms Topco, Ltd (GLID), a wholly owned subsidiary of Centrica, PLC for approximately £84.4 million. GLID is the owner of 220 megawatts of producing wind assets in the U.K. consisting of Lynn (97 MW) and Inner Dowsing (97 MW), both offshore wind farms in Lincolnshire, and the Glens of Foudland wind farm (26 MW) onshore in Aberdeenshire.

TCW will enter into a joint venture agreement with Centrica that will govern their on-going relationship as co-owners of these wind farms and the governance of GLID. GLID, in turn, will also enter into a 15-year Power Purchase Agreement (PPA) with British Gas Trading Ltd, a wholly owned subsidiary of Centrica, and will raise approximately £343 million of non-recourse project finance debt from a consortium of fourteen banks.

TCW will make the investment in GLID through two of the investment funds it manages: the $2.6 billion TCW Energy Fund XIV and the EUR 354 million European Clean Energy Fund. The transaction will form part of TCW's growing portfolio of equity and mezzanine investments in the European energy and energy-related infrastructure markets. The equity transaction is expected to be completed before year-end and is conditional on receipt of European Community Merger Regulation (ECMR) approvals.

"This transaction represents a unique opportunity to partner with one of the premier integrated utilities in Europe and benefit from their demonstrated market presence and technical expertise. With substantial wind energy assets already in operation, this company provides an attractive platform for growth and will immediately contribute toward meeting the U.K.'s targets for renewable energy," said R. Blair Thomas, Chief Executive of TCW's Energy and Infrastructure business.

According to Sam Laidlaw, Chief Executive of Centrica, "The refinancing and equity sale of part of our existing wind portfolio underlines the quality of the operational assets and creates a structure for recycling Centrica's capital and mobilising third party funds efficiently. This is a milestone in our renewables strategy and we look forward to working together with TCW who bring significant global expertise in energy investments."

Tags: TCW Energy