Monthly NAV, Dividend and Investment Update

RNS Number : 0175X

SQN Asset Finance Income Fund Ltd

21 November 2017

 

21 November 2017

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 October 2017, the unaudited estimated NAV per ordinary share (cum-income) was 99.44 pence. This includes the 0.6042 pence per ordinary share dividend announced on 20 October 2017 that went ex-dividend on 2 November 2017 and was paid on 17 November 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 98.83 pence.

As at 31 October 2017, the unaudited estimated NAV per C share (cum-income) was 97.95 pence.  This includes the 0.15 pence per C share dividend announced on 20 October 2017 that went ex-dividend on 2 November 2017 and was paid on 17 November 2017. 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 97.80 pence.

Dividends

The Company is pleased to announce a dividend of 0.6042 pence per ordinary share for the month ended 31 October 2017, reflecting an annualised dividend of 7.25 pence per share. The dividend will be payable on 19 December 2017 to holders of ordinary shares on the register on 8 December 2017. The ex-dividend date is 7 December 2017.

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 October 2017. The dividend will be payable on 19 December 2017 to holders of C shares on the register on 8 December 2017. The ex-dividend date is 7 December 2017.

Investment Update

Ordinary Shares

With regard to the Company's investment in solar manufacturing equipment, following the United States International Trade Commission's unanimous ruling in support of the Suniva petition, a recommendation has been made by the ITC to the White House to implement a remedy that would restore value to U.S. solar manufacturers and provide protection to ensure long-term viability of the industry. The recommendation is now with the United States Trade Representative's office which will undertake a review for the White House's final decision which is due by 12 January 2018.

With regard to the Company's investment in the core assets of Snoozebox, following the RNS announcements on 8 November the Company is pleased to confirm that it is working in cooperation with the Administrators to pursue the restructuring and repositioning plans that were in place prior to the Administration. Further announcements will follow.

The Company is also pleased to announce that it has now successfully re-financed two anaerobic digestion plants generating premiums over the already-attractive initially projected yields. Since the Company's year-end, a total of six transactions have come to conclusion, all at premiums to the initially projected yields which maintains the weighted average yield on all completed transactions at over 12%.

C Shares

The flow of new proposals has continued to improve since the upturn in September with the pipeline doubling. However, decision making by the potential lessees remains more protracted than in prior years. The Company has allocated £64 million of capital between drawn and committed investments. An additional £11 million of transactions have been approved, together with a pipeline of £143 million which is in excess of the capital remaining to be deployed.

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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