2nd Sep 2019 09:11
(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd said Monday it intends to raise funds through a placing in order to repay outstanding debt and work on a pipeline of investment opportunities.
Sequoia intends to issue up to 125.0 million shares, with the price per share to be announced on or around Friday next week alongside the fund's net asset value as at August 30.
Stifel Nicolaus Europe Ltd will act as financial adviser and sole bookrunner for the placing.
As at July 31, Sequoia's net asset value per share stood at 104.03 pence. Shares in the fund were down 1.7% at 114.80p on Monday morning.
At the fund's current share price, a 125.0 million share placing would raise around GBP143.1 million.
Proceeds from the placing will go towards repaying outstanding debt under the revolving credit facility, which will allow Sequoia's investment adviser Sequoia Investment Management Co Ltd to re-draw the funds for use in the investment pipeline.
As at Monday, Sequoia has cash of GBP46.8 million and outstanding drawings on the revolving credit facility of GBP161.4 million.
"Since June the rate of deployment has been ahead of our expectations with the result that our bank facilities are already significantly drawn again. Moreover our investment adviser has been able to replenish the pipeline with several attractive opportunities while continuing to rebalance the level of our exposures to stronger credits within our investment spectrum," said Chair Robert Jennings.
"Given the favourable outlook for deployment over the rest of 2019, we consider that now is an opportune time to issue additional equity. The proceeds of this placing will be used to pay down drawings on our revolving credit facility thereby increasing our headroom for deployment into new opportunities over the remainder of 2019," Jennings added.
Sequoia Economic Infrastructure currently has 1.26 billion shares issued overall.
Related Shares:
Sequoia Economic Infrastructure Fund