6th May 2016 08:17
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd said it has decided to proceed with a partially pre-emptive issue of C shares to raise GBP150.0 million, and will be implementing a placing programme following the share issuance.
The fund, which invests in senior and subordinated economic infrastructure debt, said the C share issue is being implemented by way of an open offer, placing and offer for subscription. In total, the fund said it is targeting an issue of 150.0 million shares, but said it may issue up to a maximum number of 200.0 million shares. The issue opens on Friday.
The C Shares will be issued at a price of 100 pence per share, the fund said.
Shares in Sequoia were down 0.5% at 104.00 pence on Friday morning.
The fund noted its last unaudited net asset value, as at April 13, was 99.16 pence per share.
Sequoia said 121.1 million of the C shares will be initially offered to qualifying shareholders by way of an open offer. These shareholders will be entitled to apply for 2 C shares for every 5 ordinary shares.
Sequoia said the balance of the C shares, together with any C shares not allocated to shareholders under the open offer will then be made available under the placing or offer for subscription.
Sequoia said, in addition to the C Share issue, it will be implementing a placing programme for up to 120.0 million shares which will become effective after the conversion of the C shares.
Sequoia said it will use the proceeds from the issuance and the placing to acquire target investments.
Sequoia said around 50% of the proceeds from the C share issue will be invested within three months, 75% will be invested within six months and the full amount will be invested within nine months.
By Hannah Boland; [email protected]; @Hannaheboland
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Sequoia Economic Infrastructure Fund