Monthly NAV, Dividend and Investment Update

RNS Number : 4548F

SQN Asset Finance Income Fund Ltd

21 February 2018

 

21 February 2018

SQN Asset Finance Income Fund Limited

Monthly Net Asset Value, Dividend and Investment Update

Net Asset Value

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

As at 31 January 2018, the unaudited estimated NAV per ordinary share (cum-income) was 98.97 pence. This includes the 0.6042 pence per ordinary share dividend announced on 22 January 2018 that went ex-dividend on 1 February 2018 and was paid on 19 February 2018. 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 98.36 pence.

As at 31 January 2018, the unaudited estimated NAV per C share (cum-income) was 97.71 pence.  This includes the 0.1667 pence per C share dividend announced on 22 January 2018 that went ex-dividend on 1 February 2018 and was paid on 19 February 2018. On a pro-forma basis, the unaudited estimated NAV per C share, adjusted for the payment of this dividend to holders of C shares, is 97.54 pence.

Dividends

The Company is pleased to announce a dividend of 0.6042 pence per ordinary share for the month ended 31 January 2018, reflecting an annualised dividend of 7.25 pence per share. The dividend will be payable on 19 March 2018 to holders of ordinary shares on the register on 2 March 2018. The ex-dividend date is 1 March 2018.

The Company is also pleased to announce a dividend on the C Share of 0.1667 pence per C share for the month ended 31 January 2018. The dividend will be payable on 19 March 2018 to holders of C shares on the register on 2 March 2018.  The ex-dividend date is 1 March 2018.

Investment Update

Ordinary Shares

Within the ordinary share portfolio, the positive resolution of the Snoozebox investment was announced on 2 February 2018.

Additionally, since the Company's announcement on 23 January following the White House's announcement regarding the implementation of tariffs to support the United States solar cell manufacturing industry, a number of manufacturers have made public plans to re-start or establish operations in the United States.  This was the expected market reaction and, consistent with this, Suniva has been engaged with a number of parties with regard to resuming production.

With the pay-out of approximately £3.0 million of investments leading into January, since launch £42.3 million of investments have been repaid in the Ordinary Shares with a weighted average yield that exceeds the anticipated returns. This includes certain transactions that required some degree of restructuring which, in each case, resulted in yields in excess of 10%. 

C Shares

The pace of investment within the C Share portfolio continues to accelerate with another £4.2 million investment made this week and additional investments expected to close before month-end, including a £4.3 million investment in waste-processing equipment. This week's investment was in a composting facility for a consortium of mushroom growers.

Including the above, £59.0 million has been or will be invested by the end of February, in a diversified portfolio which includes material handling equipment, transportation equipment, sub-sea infrastructure construction equipment, a combined heat and power unit, as well as investments in the agricultural and environmental sector. The average investment size in the C Share portfolio is approximately £5.0 million compared with the Ordinary Share portfolio which is greater than £7.0 million. The funding calendar for March and April is expected to be busy as the Company draws down on £16.0 million of commitments, works through £53.0 million of approved transactions, and begins to covert a pipeline of £64.0 million into closed investments.

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	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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