11th Dec 2018 14:20
LONDON (Alliance News) - SQN Secured Income Fund PLC said Tuesday it will seek to increase its size by launching an equity issue to raise up to GBP100 million.
The fund, which invests in SME loan assets and secured lending opportunities, said it will launch an equity issue in the first quarter of the 2019 with a tap issue, or with a larger target capital raise of between GBP50 million to GBP100 million, sized according to the number of opportunities at hand that can be closed within a short window.
SQN Secured Income currently has a market capitalisation of GBP48.5 million.
At the same time, in order to broaden the fund's shareholder base, SQN Secured said one of its largest shareholder, Somerston Group, has agreed to make up to 11.8 million of its existing shares available to new investors at a price of 95 pence per share, a 2.2% discount to the fund's net asset value in October.
The fund intends to maintain its current dividend level of 7 pence per share per annum with the aim of moving towards delivering its target total return of 8% per annum over the medium term. It has appointed finnCap Ltd, finnCap Ltd and Dickson Minto as advisers to supports its growth plans.
SQN Secured Income Fund shares were trading 0.9% higher at 92.80 pence each.
Related Shares:
SSIF.L