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Ørsted has appointed a syndicate of BNP PARIBAS, Danske Bank A/S and J.P. Morgan SE as Joint Global Coordinators, next to Morgan Stanley & Co International, for the planned DKK 60 billion (around EUR 8 billion; USD 9.4 billion) rights issue, proceeds of which will be used to fund the construction of the Sunrise Wind offshore wind farm in the US and strengthening Ørsted’s capital structure.
The syndicate of banks are jointly underwriting the rights issue for the approximately 49.9 per cent that will not be subscribed to by Ørsted’s majority shareholder, the Danish state (50.1 per cent).
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BofA Securities Europe SA and Goldman Sachs International will act as Joint Bookrunners for the rights issue.
According to Ørsted, whose 704 MW Revolution Wind project received a federal stop-work order on 22 August, the planned rights issue is designed to fund building the 924 MW Sunrise Wind to completion and provide a financial buffer for the company to execute its business plan, including projects in the uncertain US offshore wind market.
“The stop-work order for Revolution Wind emphasises the increased regulatory uncertainty for offshore wind in the US. The planned rights issue has been sized to provide the required strengthening of Ørsted’s capital structure to execute its business plan, even when taking into account the impact of this uncertainty on Ørsted’s US offshore wind portfolio”, the company said on 25 August.
The investment required to complete the almost-finished Revolution Wind offshore wind farm amounts to approximately DKK 5 billion (around EUR 670 million; USD 783 million) for Ørsted’s 50 per cent share of the project, which the company co-owns with Skyborn Renewables. Once complete, Revolution Wind is expected to have an annual run-rate EBITDA contribution of approximately DKK 1 billion (around EUR 134 million; USD 157 million), the developer says.