14th May 2019 09:31
LONDON (Alliance News) - Sequoia Economic Infrastructure Income Fund Ltd on Tuesday increased the size of its loan facility and said it considering a further equity issue to fund current pipeline of investment opportunities.
The company intends to finance available investment opportunities through further use of leverage, with the intention to pay down such leverage through a future equity issue, in order to remain substantially fully invested and avoid cash drag.
Sequoia, which is focused on investing in infrastructure debt, increased the size of its revolving credit facility by GBP50 million to GBP200 million. The tenure of the loan has also been extended by one year to December 2021, with borrowing cost of 210 basis points over the London Inter-bank Offered Rate.
The UK listed company said any equity issue will be at a price that is accretive to net asset value and is expected to include a material level of pre-emption rights to the company's existing shareholders.
As at April 30, the company had outstanding drawings on its credit facility of GBP113.9 million and cash of GBP25.5 million, resulting in net leverage of GBP88.4 million. The company had undrawn commitments and additional investments in settlement, collectively valued at GBP84.2 million.
Shares in Sequoia were trading 0.7% lower at 110.80 pence each on Tuesday morning.
Related Shares:
Sequoia Economic Infrastructure Fund