SDCL ends sale process as subsidiary Onyx secures new facility

(Sharecast News) - SDCL Efficiency Income Trust said in an update on Wednesday that its US subsidiary Onyx Renewable Partners has secured a new $260m senior secured credit facility to support the expansion of its distributed energy portfolio. The London-listed firm said the new facility, arranged by Apterra Infrastructure Capital, replaced an existing $115m revolving credit facility, and would fund ongoing solar photovoltaic and battery storage projects across the United States.

It described the financing as a milestone in Onyx's development, enabling the platform to self-fund its near-term pipeline and reducing SDCL's own future funding commitments from its revolving facility.

The company noted that it would have minimal impact on overall portfolio gearing.

While the majority of Onyx's valuation was based on contracted assets, up to 15% related to platform value tied to its growth prospects - an element more difficult to monetise in the current US market environment, which SDCL described as hampered by policy uncertainty.

Although the company received multiple offers for a full disposal of Onyx, SDCL said they did not meet acceptable terms.

It said it had now ended the formal sale process, and was instead exploring privately negotiated alternatives, including equity partnerships tied to Onyx's contracted portfolio.

A select group of counterparties had been invited into discussions, with further updates to be provided in the company's upcoming annual report.

At 1035 BST, shares in SDCL Efficiency Income Trust were up 2.94% at 49p.

Reporting by Josh White for Sharecast.com.