28 January 2009
Mainstream Renewable Power, the global energy company set up last year by Eddie O’Connor and Fintan Whelan, has successfully raised €26m in loan notes, structured and arranged by Dolmen Corporate Finance and placed by Dolmen Stockbrokers Ltd . These loan notes will be used to provide working capital for Mainstream’s development programme of renewable energy projects, and complements the €72m in equity raised to-date by the company.
The loan note pays a coupon of 12% per annum over a three year period and a portion of the loan note is convertible into equity in Mainstream at the end of this period. The loan notes also provide Dolmen clients with a preferred return and security over certain Mainstream assets.
This current round of funding is being invested, along with at least a matching amount of Mainstream equity in the development and construction of wind energy projects around the world – the first of which goes into construction later this year in Chile. Once fully developed, Mainstream plans to sell the projects to infrastructure funds and other long-term investors such as utilities and pension funds, but will continue to operate and maintain the plant on behalf of its owners. The proceeds of these asset sales will be recycled to finance the development of further projects in due course.
Commenting on the transaction, Fintan Whelan, Mainstream’s Chief Financial Officer said, “Identifying funding sources other than banks and financial institutions is particularly important in current market conditions. This transaction clearly demonstrates the flexibility of the Mainstream model as well as an enduring appetite among a group of investors who have had positive experience from previous transactions of a similar nature”.
Kevin Beary, Managing Director of Dolmen Corporate Finance said, “Even in this challenging market, the success of this fundraising shows a clear appetite for well designed investment products tailored to meet the specific needs of private investors.”
He further commented that “Dolmen were constantly focused on identifying opportunities to match the needs of Irish investors with the objectives of Corporate Finance clients who are prepared to be flexible in meeting their funding needs”.
For more information, contact:
Emmet Curley, Mainstream Renewable Power
Tel: +353 (0)85 734 9946