John Laing Environmental Assets Group Limited (JLEN) has plans to launch an equity raise targeting an issue of £45 million (US$69.8 million) of new ordinary shares of no par value in the capital of the company through a placing and offer for subscription.
JLEN also intends to implement a placing programme of up to 150 million new ordinary shares and/or new C-shares of no par value in the capital of the company.
JLEN recently announced the acquisition of Branden solar park and Carscreugh and Wear Point wind farms for a total consideration of £42.5 million, which were funded by a draw-down under the company's £50 million revolving credit facility. The Issue and the placing programme will enable JLEN to free up its credit facility and fund the strong pipeline of opportunities available to the company from the John Laing group and third parties.
Richard Morse, Chairman of JLEN, said:
"We have been pleased with performance over the first 12 months since the successful IPO in March 2014. We acquired the initial portfolio shortly after admission and have since acquired three further assets, utilising the company's credit facility. We have delivered dividends totalling six pence per share, in line with the target set out at the time of the IPO. The company is now well placed for the next phase of growth that this equity raising will allow us to achieve."
- Diversified portfolio - JLEN has a diversified portfolio of ten wind, solar, waste and wastewater management projects in the UK with thirteen fully operational sites.
- Multiple asset classes - Investing across multiple environmental asset classes allows JLEN to: (i) focus on the most attractive opportunities in the environmental sector; and (ii) minimise exposure to risks specific to any one asset class providing a balanced portfolio and stable cash flows.
- Progressive dividends - the company's aim is to provide an annual dividend per Ordinary Share, initially of six pence for the period to 31 March 2015, increasing progressively in line with inflation from 1 April 2015.
- Revenue downside protection - cash flows supported by long-term contracts or stable regulatory frameworks.
- Revenues linked to inflation - Revenues are primarily either directly linked to RPI or are governed by indexation mechanisms correlated with RPI
- Fully invested - JLEN is fully invested, with any capital raised in the Issue or Placing Programme to be used to repay its credit facility or finance near term acquisitions.
- Strong performance - JLEN has delivered total shareholder return of 11.9 per cent. for the period since IPO, reflecting strong share price performance while the NAV has remained stable and dividends totalling six pence per Ordinary Share have been paid or declared for the first 12 month period, in line with the company's target.
- Strong pipeline of assets - JLEN is party to a first offer agreement with the John Laing group and is also pursuing acquisitions from third parties
- Capital efficiency - JLEN successfully raised a £50 million multi-currency revolving credit facility, with £43.7m currently drawn.