Credit Facility - Exercise of Accordion

RNS Number : 5242X

Sequoia Economic Infra Inc Fd Ld

10 August 2018

 

10 August 2018

Sequoia Economic Infrastructure Income Fund Limited

(the "Company" or "SEQI") 

Exercise of Accordion Tranche

The Board of SEQI (the "Board"), the specialist investor in economic infrastructure debt, is pleased to announce that it has fully deployed the proceeds of its existing multi-currency Revolving Credit Facility of £100 million from The Royal Bank of Scotland International Limited, ING Bank and Investec (the "RCF").

Accordingly, the Board has resolved to exercise the £50 million incremental accordion tranche of the RCF through a lending group comprising of The Royal Bank of Scotland International Limited, Macquarie Bank, ING and Investec (the "Accordion").

The tenor of the Accordion will be approximately two and a quarter years, commencing on 9 August 2018, with a borrowing cost of 210 basis points over LIBOR. An arrangement fee will be payable in addition to a commitment fee on the undrawn portion of the Accordion.

The RCF and the Accordion will be used for working capital purposes and to fund investments in accordance with the Company's investment policy. The RCF will enable the Company to reduce cash drag by buying assets through the use of leverage with the intention to pay this down in the future through equity issuance.  

The RCF and the Accordion impose an interest cover test and a loan to value test on the Company and is secured by, inter alia, a charge over the bank accounts of the Company, a charge over the shares in Sequoia IDF Asset Holdings S.A. (the "Subsidiary") held by the Company and a charge on the assets of the Subsidiary. In accordance with the Company's Investment Policy, any borrowings undertaken by the Company will not exceed 20 per cent. of the value of the assets of the Company less its liabilities. 

LEI: 2138006OW12FQHJ6PX91

For further information please contact: 

Sequoia Investment Management Company Steve Cook Dolf Kohnhorst Randall Sandstrom Greg Taylor	[phone]
Stifel Nicolaus Europe Limited Neil Winward Mark Bloomfield Gaudi Le Roux	[phone]
Tulchan Communications (Financial PR) James Macey White Martin Pengelley Elizabeth Snow	[phone]
Praxis Fund Services Limited (Company Secretary) Matt Falla	[phone]

About Sequoia Economic Infrastructure Income Fund Limited

The Company seeks to provide investors with regular, sustained, long-term distributions and capital appreciation from a diversified portfolio of senior and subordinated economic infrastructure debt investments. The Company is advised by Sequoia Investment Management Company Limited.

 

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