19th Sep 2018 09:12
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd said Wednesday it will raise GBP200 million via share issue to fund attractive investment opportunities in the economic infrastructure debt market.
The investment trust will issue up to 188.7 million new ordinary shares at a price of 106.0 pence per share.
Sequoia Economic Infrastructure will offer 149.4 million shares to current shareholders by way of an open offer pursuant to which they will be entitled to apply for 2 new shares for every 11 existing shares held. The balance of the new shares, together with any shares not taken up in the open offer, will be issued via placing and subscription offer.
The fund intends to use the proceeds to repay the drawn commitments under its multi-currency revolving credit facility and to fund its GBP300 million investment pipeline. The company had drawn an amount of around GBP116.2 million from its loan facility.
Separately, Sequoia Economic Infrastructure also intends to implement a share issuance programme, which would allow the company to issue up to a maximum of 250 million shares in the future.
Stifel Nicolaus Europe Ltd is acting as sole sponsor, financial adviser and bookrunner to the company.
Shares in Sequoia Economic Infrastructure were down 2.8% at 107.88 pence each on Wednesday morning.
Related Shares:
Sequoia Economic Infrastructure Fund