Monthly NAV, Dividend and Portfolio Update

RNS Number : 6884L

SQN Asset Finance Income Fund Ltd

21 July 2017

 

21 July 2017

SQN Asset Finance Income Fund Limited

LEI:  2138007S3YRY3IUU4W39

Monthly Net Asset Value. Dividend and Portfolio Update

Net Asset Value

SQN Asset Finance Income Fund Limited (the "Company" or "SQN"), the leading diversified equipment leasing fund listed in the UK, is pleased to provide its monthly net asset value ("NAV") update.

As at 30 June 2017, the unaudited estimated NAV per ordinary share (cum-income) was 99.63 pence. This includes the 0.6042 pence per ordinary share dividend announced on 21 June 2017 that went ex-dividend on 6 July 2017 and was paid on 19 July 2017. On a pro-forma basis, the unaudited estimated NAV per ordinary share, adjusted for the payment of this dividend to holders of ordinary shares, is 99.03 pence.

As at 30 June 2017, the unaudited estimated NAV per C share was 98.06 pence.

Dividends

The Company is pleased to announce a dividend of 0.6042 pence per ordinary share for the month ended 30 June 2017, reflecting an annualised dividend of 7.25 pence per share. The dividend will be payable on 18 August 2017 to holders of ordinary shares on the register on 4 August 2017. The ex-dividend date is 3 August 2017.

The Board also has pleasure in declaring the second interim dividend on the C share of 0.3 pence per C share for the 3-month period to 30 June 2017. The dividend will be payable on 18 August 2017 to holders of C shares on the register on 4 August 2017. The ex-dividend date is 3 August 2017.

Ordinary Share Investment Update

Further to the announcement on 19 April 2017, the United States solar cell manufacturer investment remains held at cost with no income accruing. Whilst progress towards a resolution is complex and involves a decision process that neither the solar company nor SQN can control, since the date of the announcement, progress has been in-line with expectations. There have been a number of developments that can be viewed as favourable although there can be no assurance that they will affect the outcome. The most material development is that the other major solar manufacturer operating in the United States has joined the petition and, as such, more than 90% of the industry is now being represented in the action. Additionally, an unrelated financial investor has joined with SQN to provide funds to support the solar company and pursue the 201 Trade Case based on their strong belief that the company will be successful in being granted the compensation and protections being sought.  At the same time, the solar company has been engaged in conversations with multiple parties concerning forward-selling as much as 100% of its production capacity in 2018, pending a resolution that incorporates varying degrees of the requested remedies.

The next steps in the process are a public hearing at the International Trade Commission on 15 August 2017 and, most importantly, the Commission's findings on 22 September 2017. If the Commission finds that there have been damages, it has until 10 October 2017 to make a recommendation to the White House. The White House will then have up to 60 days to make a final decision. 

As also previously reported, legal action has commenced to force payment under the guarantee from the parent company. Summary judgement has been entered in New York Court and is awaiting the judge's sign-off which is expected by 28 August 2017 after which legal enforcement will commence.

'C' Share Investment Update

The Company has allocated £49 million of capital between drawn and committed investments. An additional £19 million of transactions have been approved, together with a pipeline of £114 million. May and June were relatively slow months in terms of deployment but the pace has picked up in July keeping the Company on track to convert the C shares into ordinary shares by year end, following the resolution of the U.S. solar investment.

For further information please contact:

SQN Capital Management, LLC Jeremiah Silkowski Neil Roberts	01932 575 888
Winterflood Securities Limited	020 3100 0000
Neil Langford Chris Mills
Buchanan Charles Ryland Vicky Hayns Henry Wilson	020 7466 5000

Notes to Editor

The Company invests in equipment lease and asset finance arrangements across a diverse portfolio of assets and industries predominantly in the UK, Northern Europe and US. The Company focuses on business-essential, revenue-producing (or cost saving) equipment and other assets with high in-place value and long economic life relative to the investment term.

The Company's Investment Managers are SQN Capital Management, LLC, a Registered Investment Advisor with the United States Securities and Exchange Commission and its subsidiary, SQN Capital Management (UK) Limited. The principals responsible for managing the portfolio are Jeremiah Silkowski and Neil Roberts.

 

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