Results of Issue and Total Voting Rights

RNS Number : 4109E

Sequoia Economic Infra Inc Fd Ld

27 February 2020

 

THIS ANNOUNCEMENT IS NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM THE UNITED STATES, CANADA, AUSTRALIA, NEW ZEALAND, JAPAN OR THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH SUCH PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL.

27 February 2020

Sequoia Economic Infrastructure Income Fund Limited ("SEQI" or the "Company")

Result of Initial Issue and Total Voting Rights

On 10 February 2020, the Board of SEQI (the "Board"), the specialist investor in economic infrastructure debt, announced it was seeking to raise £250 million through a partially pre-emptive issue of New Ordinary Shares by way of an Open Offer, Placing and Offer for Subscription (the "Initial Issue"). The Board is pleased to announce that the Initial Issue has been very significantly oversubscribed and investor demand for the Initial Issue has also significantly exceeded the maximum issue size of £300 million.

In determining the number of New Ordinary Shares to be issued, the Board has taken into account the strength of the Investment Adviser's investment pipeline and current available cash resources. The Board, after consideration and consultation with the Investment Adviser and Jefferies International Limited ("Jefferies"), the bookrunner, has determined to re-allocate 44,642,857 Ordinary Shares available under the Share Issuance Programme to the Initial Issue. Accordingly, 267,857,142 New Ordinary Shares will be issued at the Initial Issue Price of 112.0 pence. The gross proceeds of the Initial Issue will be £300.0 million.

Due to the very significant demand, a scaling back exercise has been undertaken with respect to applications received pursuant to the Placing, Open Offer (with respect to the Excess Facility) and Offer for Subscription.

Robert Jennings, Chairman of SEQI commented:

"2019 was a significant year for SEQI with our dividend target increasing last May and NAV total return performance currently ahead of our target. We are very appreciative of the support shown by both existing and new shareholders, which is a strong endorsement of our strategy.

The proceeds of the issue will be used to repay all of the drawings under our RCF facility. Given the volatility and dislocation in markets in recent days, strengthening our balance sheet in the current environment is desirable and will allow us to pursue attractive buying opportunities in the economic infrastructure debt markets."

A total of 267,857,142 New Ordinary Shares will be issued (subject to Admission as defined below) of which  184,908,573 New Ordinary Shares will be issued pursuant to the Open Offer (including the Excess Application Facility) and  82,948,569 New Ordinary Shares will be issued pursuant to the Placing and the Offer for Subscription. Application has been made for the New Ordinary Shares to be admitted to the Official List and to trading on the London Stock Exchange's premium segment of the Main Market ("Admission"). It is expected that Admission will become effective and dealings in the New Ordinary Shares will commence on 3 March 2020. Once issued, the New Ordinary Shares will rank pari passu with the existing Ordinary Shares.

Following Admission, the Company will have 1,654,671,448 Ordinary Shares in issue. Therefore, the total number of voting rights of the Company will be 1,654,671,448 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest in, the Company.

Unless otherwise defined, the terms used in this announcement shall have the same meaning as set out in the prospectus of the Company dated 10 February 2020.

The information contained in this announcement may constitute inside information. The person responsible for the release of this announcement on behalf of the Company is Praxis Fund Services Limited.

LEI: 2138006OW12FQHJ6PX91

For further information:
Sequoia Investment Management Company	[phone]
Steve Cook Dolf Kohnhorst Randall Sandstrom Greg Taylor
Jefferies International Limited	[phone]
Gary Gould Stuart Klein
Tulchan Communications (Financial PR)	[phone]
Martin Pengelley Elizabeth Snow Deborah Roney
Praxis Fund Services Limited (Company Secretary)	[phone]
Matt Falla Katrina Rowe

About Sequoia Economic Infrastructure Income Fund Limited

The Company is a Guernsey registered closed-ended investment company that 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.

LEI: 2138006OW12FQHJ6PX91

Important Notices

This announcement is an advertisement and does not constitute a prospectus relating to the Company and does not constitute, or form part of, any offer or invitation to sell or issue, or an invitation to purchase investments of any description, or any solicitation of any offer to subscribe for, any securities in the Company in any jurisdiction nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with or act as any inducements to enter into, any contract therefor. Copies of the Prospectus (including the Registration Document)  published by the Company are available from http://www.seqifund.com .

This announcement does not constitute and may not constitute and may not be construed as a recommendation regarding the issue or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase securities. Potential investors should consult a professional advisor as to the suitability of an investment in the securities for the person concerned.

The value of Ordinary Shares and the income from them is not guaranteed and can fall as well as rise due to stock market and currency movements. When you sell your investment you may get back less than you originally invested. Figures refer to past performance and past performance is not a reliable indicator of future results. Returns may increase or decrease as a result of currency fluctuations. Capital is at risk and investors need to understand the risks of investing. Please refer to the Prospectus for further information, in particular the "Risk Factors" sections set out in both the Securities Note and the Registration Document.

Neither this announcement nor the information contained herein is for release, publication or distribution, directly or indirectly, in, into or from the United States, Canada, Australia, New Zealand, Japan or the Republic of South Africa or any other jurisdiction where to do so might constitute a violation of the relevant laws or regulations of such jurisdiction. The securities referred to herein have not been and will not be registered under the relevant securities laws of any such excluded territory.

This announcement is not for publication or distribution, directly or indirectly, in or into the United States. This announcement does not contain, constitute or form part of an offer for sale of, resale of, transfer of or delivery of or the solicitation of an offer to purchase directly or indirectly, securities in the United States or to, or for the account or benefit of a U.S. person (as defined in Regulation S under the Securities Act). The securities referred to herein have not been, and will not, be registered under the Securities Act or any other applicable securities laws, or with any securities regulatory authority, of any state or other jurisdiction of the United States, and may not be offered, sold, resold, transferred or delivered, directly or indirectly, in or into the United States or to, or for the account or benefit of, any U.S. person absent registration or an applicable exemption from the registration requirements of the Securities Act. There will be no public offering of the Company's securities in the United States.

The Company has not been and will not be registered under the US Investment Company Act of 1940, as amended (the "Investment Company Act"), and neither International Fund Management Limited nor Sequoia Investment Management Company Limited are registered as an investment adviser under the US Investment Advisers Act of 1940, as amended (the "Advisers Act"). Consequently, investors are not entitled to the benefits and protections of the Investment Company Act or the Advisers Act.

The securities described in this announcement have not been approved or disapproved by the US Securities and Exchange Commission, any state securities commission or any other regulatory authority in the United States, nor have any of the foregoing authorities passed upon or endorsed the merits of any offering of securities or the accuracy or adequacy of this document. Any representation to the contrary is a criminal offence in the United States.

This announcement does not constitute or form part of, and should not be construed as, any offer or invitation to sell, or any solicitation of any offer to purchase or subscribe for any ordinary shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities.

The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about, and observe, any such restrictions. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction.

Subject to certain exceptions, the securities referred to herein may not be offered or sold in the United States, Canada, Australia, New Zealand, Japan or the Republic of South Africa or to, or for the account or benefit of, any national, resident or citizen of the United States, Canada, Australia, New Zealand, Japan or the Republic of South Africa. There will be no offer of the ordinary shares in the United States, Canada, Australia, New Zealand, Japan or the Republic of South Africa.

Certain statements in this announcement are forward-looking statements which are based on the Company's expectations, intentions and projections regarding its future performance, anticipated events or trends and other matters that are not historical facts. These forward-looking statements, which may use words such as "aim", "anticipate", "believe", "could", "intend", "estimate", "expect", and words of similar meaning, include all matters that are not historical facts. These forward-looking statements involve risks, assumptions and uncertainties that could cause the actual results of operations, financial condition, liquidity and dividend policy and the development of the industries, which the Company's businesses operate to differ materially from the impression created by forward-looking statements. These statements are not guarantees of future performance and are subject to known and uncertain risks, uncertainties and other factors that could cause actual results to differ material from those express or implied by such forward-looking statements. Given those risks and uncertainties, prospective investors are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements speak only as of the date of such statements and, except as required by the Financial Conduct Authority, the London Stock Exchange or applicable law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise.

Jefferies International Limited ("Jefferies"), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority, is acting exclusively for the Company and no-one else in connection with the Initial Issue. Jefferies will not regard any other person as its client in relation to the Initial Issue and will not be responsible to anyone other than the Company for providing the protections afforded to its clients, nor for providing advice in relation to the Initial Issue, the contents of this announcement or any transaction, arrangement or other matter referred to herein.

Neither Jefferies nor any of its directors, officers, employees, advisers, affiliates or agents accepts any responsibility or liability whatsoever for/or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in this announcement (or whether any information has been omitted from the announcement) or any other information relating to the Company or its subsidiary, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of the announcement or its contents or otherwise arising in connection therewith.

The Company is incorporated in Guernsey and has been registered as a registered closed-ended collective investment scheme under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, as amended. It is suitable only for professional or experienced investors, or those who have taken appropriate professional advice.

You are wholly responsible for ensuring that all aspects of the Company are acceptable to you. Investment in listed funds may involve special risks that could lead to a loss of all or a substantial portion of such investment. Unless you fully understand and accept the nature of the Company and the potential risks inherent in it you should not invest in the Company.

Further information in relation to the regulatory treatment of listed funds domiciled in Guernsey may be found on the website of the Guernsey Financial Services Commission at http://www.gfsc.gg/The-Commission/Pages/Home.aspx.

Information for Distributors

Solely for the purposes of the product governance requirements contained within: (a) EU Directive 2014/65/EU on markets in financial instruments, as amended ("MiFID II"); (b) Articles 9 and 10 of Commission Delegated Directive (EU) 2017/593 supplementing MiFID II; and (c) local implementing measures (together, the "MiFID II Product Governance Requirements"), and disclaiming all and any liability, whether arising in tort, contract or otherwise, which any "manufacturer" (for the purposes of the Product Governance Requirements) may otherwise have with respect thereto, the Ordinary Shares have been subject to a product approval process, which has determined that such securities are: (i) compatible with an end target market of investors who meet the criteria of retail and professional clients and eligible counterparties, each as defined in MiFID II; and (ii) eligible for distribution through all distribution channels as are permitted by MiFID II (the "Target Market Assessment").

Notwithstanding the Target Market Assessment, distributors should note that: the price of the Ordinary Shares may decline and investors could lose all or part of their investment; the Ordinary Shares offer no guaranteed income and no capital protection; and an investment in Ordinary Shares is compatible only with investors who do not need a guaranteed income or capital protection, who (either alone or in conjunction with an appropriate financial or other adviser) are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses that may result therefrom. The Target Market Assessment is without prejudice to the requirements of any contractual, legal or regulatory selling restrictions in relation to the Issue. Furthermore, it is noted that, notwithstanding the Target Market Assessment, Jefferies will only procure investors who meet the criteria of professional clients and eligible counterparties.

For the avoidance of doubt, the Target Market Assessment does not constitute: (a) an assessment of suitability or appropriateness for the purposes of MiFID II; or (b) a recommendation to any investor or group of investors to invest in, or purchase, or take any other action whatsoever with respect to the New Ordinary Shares pursuant to the Initial Issue.

Each distributor is responsible for undertaking its own Target Market Assessment in respect of the New Ordinary Shares and determining appropriate distribution channels.

Marketing disclosures pursuant to AIFMD (as defined below)  

The Company is an externally managed alternative investment fund and has appointed the Investment Manager (the "AIFM"), as its alternative investment fund manager

Pursuant to Article 23 of AIFMD and the Alternative Investment Fund Managers Regulations 2013 (No. 1173/2013) and the Investment Funds Sourcebook of the FCA (the "UK AIFMD Rules"), the AIFM is required to make available to persons in the European Union who were invited to and who chose to participate in the Initial Issue, by making an oral or written offer to subscribe for New Ordinary Shares, including any individuals, funds or others on whose behalf a commitment to subscribe for New Ordinary Shares is given (the "Subscribers") certain information (the "Article 23 Disclosures"). For the purposes of the Initial Issue, the AIFM made the Article 23 Disclosures available to Subscribers in the 'Investor - Shareholder Information' section of the Company's website at: http://www.seqifund.com.

PRIIPS (as defined below)

In accordance with the Regulation (EU) No 1286/2014 of the European Parliament and of the Council of 26 November 2014 on key information documents for packaged retail and insurance-based investment products ("PRIIPs") and its implementing and delegated acts (the "PRIIPs Regulation"), the AIFM has prepared a key information document (the "KID") in respect of the Ordinary Shares. The KID is made available by the AIFM to "retail investors" prior to them making an investment decision in respect of the Ordinary Shares at http://www.seqifund.com.

If you are distributing Ordinary Shares, it is your responsibility to ensure that the KID is provided to any clients that are "retail clients".  

The Company is the only manufacturer of the Ordinary Shares for the purposes of the PRIIPs Regulation and neither Jefferies nor the AIFM are manufacturers for these purposes. Neither Jefferies nor the AIFM makes any representations, express or implied, or accepts any responsibility whatsoever for the contents of the KID prepared by the Company nor accepts any responsibility to update the contents of the KID in accordance with the PRIIPs Regulation, to undertake any review processes in relation thereto or to provide the KID to future distributors of Ordinary Shares. Both Jefferies and the AIFM and their respective affiliates accordingly disclaim all and any liability whether arising in tort or contract or otherwise which it or they might have in respect of the key information documents prepared by the Company. Investors should note that the procedure for calculating the risks, costs and potential returns in the KID are prescribed by laws. The figures in the KID may not reflect actual returns for the Company and anticipated performance returns cannot be guaranteed.  

 

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