Company Update - Conclusion of Strategic Review

RNS Number : 9411S

SQN Secured Income Fund PLC

14 July 2020

 

13 July 2020

SQN Secured Income Fund plc

Company Update - Conclusion of Strategic Review

Further to the announcement on 19 June 2020, the Board of SQN Secured Income Fund plc (the "Company") has concluded its strategic review of the options available to the Company.  The Board has determined that the Company should be put into managed wind-down with cash returned to shareholders in a timely and efficient manner.

The Board therefore intends to publish a circular to shareholders (the "Circular") within the next few weeks and to convene a general meeting at which it will seek approval from shareholders to amend the Company's investment objective and policy and approve any related matters necessary to facilitate a managed wind-down.  If approved the Board will then endeavour to realise all of the investments in a manner that achieves a balance between maximising the value received from investments and making timely returns to shareholders.

The longest dated loan in the portfolio matures in March 2026, whereas the weighted average life of the portfolio is 2.9 years which includes some extensions for CoVid.  Subject to shareholders approving the managed wind-down, the Board will, in seeking to maximise value from the Company's portfolio, consider asset sales if appropriate terms can be agreed, but expects that the majority of the portfolio will be run off in accordance with the maturity profile of the loans with the possibility of some borrowers refinancing their loans with the Company prior to such maturity dates.

Board and management arrangements

The announcement by the Company on 9 July 2020 confirmed Brett Miller's appointment as a non-executive director. He will be working with the rest of the board and the Investment Manager to help maximise shareholder returns.

Contact Details

David Stevenson (Chairman)

Telephone [phone]

Brett Miller (Director)

Telephone [phone]

finnCap Ltd. Corporate Finance: William Marle / Giles Rolls Sales: Mark Whitfeld

tel: [phone]

Forward-looking statements

This announcement may contain forward-looking statements with respect to the Company's future financial performance and position. Such statements are based on current expectations, estimates and projections of the Company and information currently available to the Company. The Company cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements. The Company accepts no obligation to update the statements contained in this press release, unless required by law.

 

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