10th Feb 2020 08:53
(Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Monday said it intends to raise GBP250 million through a placing, subscription and open offer of up to 223.2 million shares at 112.0 pence each.
The stock was down 0.3% at 114.50 pence each on Monday morning in London.
The company plans to issue 184.9 million pursuant to a share open offer for shareholders, on the basis of 2 new shares for every 15 existing shares. The remaining new shares, together with any new shares not taken up by shareholders under the open offer, will be made available under the placing and subscription offer.
The economic infrastructure debt investor said the proceeds of the placing will go towards repaying its drawn commitments in its GBP280 million credit facility.
As at the end of 2019, Sequoia said it had used GBP224 million of the facility as well as cash of GBP56.8 million, resulting in net leverage of GBP167.2 million. The company also said it had undrawn commitments on existing investments valued at GBP92.7 million.
Any remaining funds will be used to take advantage of a pipeline of investment opportunities of over GBP380 million.
Sequoia added that it will also implement a share issuance programme for up to 300 million additional shares to provide it with flexibility in the event it wishes to raise further capital over the next 12 months to either repay any future drawn down funds under its credit facility, or to invest in new opportunities.
"The fundraise builds on a successful period over the current financial year ending March 31. The board is encouraged by the net asset value per share progression, and by the quality and depth of our investment pipeline. In May, we were able to increase our dividend. If current trends continue, we will again review our target payout early in the coming financial year commencing April 1."
By Ife Taiwo; [email protected]
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