Utilico Insights - Jacqueline Broers assesses why Vietnam could be the darling of Asia for investors. Watch the full video here.

Less Ads, More Data, More Tools Register for FREE

Pin to quick picksSQN.L Regulatory News (SQN)

  • There is currently no data for SQN

Watchlists are a member only feature

Login to your account

Alerts are a premium feature

Login to your account

Investment Update

23 Jul 2018 10:25

RNS Number : 4406V
SQN Asset Finance Income Fund Ltd
23 July 2018
 

23 July 2018

 

SQN Asset Finance Income Fund Ltd

Investment Update Following the 30 June Financial Year-end

 

SQN Asset Finance Income Fund Limited (the "Company"), the leading diversified equipment leasing fund listed in the UK, is pleased to provide this update following the conclusion of the financial year-end 30 June 2018 and in advance of releasing the Annual Report and Accounts in October 2018.

Responding to requests for a higher level of disclosure for an asset class still relatively new to the London-listed market, the Company and the Manager have endeavoured to increase the frequency and level of detail of market communications. In continuation of this effort, the Company provides this update.

In the half-year report for 31 December 2017 released in March 2018, the Company identified six investments that were "Past Due not Impaired". In conjunction with the release of the half-year report, the Manager communicated to the market that, in the normal course of generating yields at the levels necessary to sustain a 7.25% dividend, there would always be transactions requiring attention. Further, it was reported that, based on the collateralised nature of the Company's investment strategy, workouts do not necessarily result in impairments and, on occasion, have the potential for additional returns to be realised.

The Company is pleased to report that four out of the six accounts have been restructured into an improved position and confidence remains high on a positive outcome for the remaining two investments which includes the Suniva investment and the relatively small investment in the portfolio of telecommunication towers.

The Company is further pleased to report that no new material issues have arisen in the portfolio. While the outlook remains positive, it is expected that new issues will inevitably present themselves at which time, the Company hopes that the market will see these as being in the normal course and recognise that, given time, they will likely be resolved.

The Company is also pleased to announce that more than 77% of the C Share capital has been deployed and expects to increase the dividend to an annualised rate of 7.25 in August 2018.

Individual Transaction Updates (In order as disclosed in the half-year report and referenced above):

Solar (Suniva)

The Company has continued discussions with multiple counterparties seeking to lease or purchase the Suniva equipment. The recent developments in the United States have provided additional support for domestic manufacturers which should strengthen Suniva's market position. Furthermore, efforts have intensified in pursuing the guarantee with subpoenas being issued to officers of the guarantor. The Board, as advised by the Manager, continues to believe that a full recovery of the Suniva investment will be achieved. This is expected to be through the lease or sale of the Suniva equipment and, to the extent required, by pursuing the guarantee. The Company has examined the minimum expected recovery under the lease or sale of the Suniva equipment and, considering the potential time required to realise the guarantee, the Company has reflected an impairment of £2.4m to the Suniva investment to account for the risk adjusted time value of money on such proportion of the investment should a full recovery not be achieved through a sale or re-lease.

Medical Equipment

At 31 December 2017, it was reported that a hospital for which the Company provided financing had filed for reorganization under Chapter 11 of the US Bankruptcy Code. The hospital emerged from bankruptcy in July having been purchased by a financial investor with the ultimate intention of reselling the hospital at a multiple of its acquisition price. Simultaneously with this transaction, the Company has entered into a new secured $5m note, with enhanced collateral, with the hospital and has also been granted a 15% equity interest in the hospital. The interest rate on the note is 5%.

 

Transportation

The Company had previously reported that it provided financing for four multi-purpose vessels at a relatively low loan to value. The Company made the decision to force a sale of those vessels which resulted in a series of competitive bids and a price sufficient to pay the Company all outstanding principal and interest. The Company is in the documentation phase of closing.

 

IT & Telecom

The Company provided financing for a portfolio of telecommunication towers. The CEO of the borrower unexpectedly passed away which resulted in a delay in selling or refinancing the assets which caused the loan to go into default. The new management of the operator is in the process of arranging to refinance the Company's assets and has received terms sheets from four lenders. A resolution to this matter is expected by September 2018. Until then, the investment remains insured by an investment grade reinsurance syndicate.

 

Hospitality (Snoozebox)

The Company has provided previous updates on the Snoozebox restructuring. Since the date of the last update, the investment has continued to generate regular income and is a now fully performing under the terms of the new lease.

 

Agriculture (Anaerobic Digestion Plant)

At 31 December 2017, it was reported that an anaerobic digestion plant representing approximately 7.5% of NAV and subject to a finance lease was past due. The lease is now current and the plant is operating in accordance with the planned ramp-up.

 

 

Enquiries:

SQN Capital Management, LLC

01932 575 888

Neil Roberts

Jeremiah Silkowski

 

Winterflood Securities Limited

020 3100 0000

Neil Langford

Chris Mills

 

Buchanan

020 7466 5000

Charles Ryland

Henry Wilson

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
 
END
 
 
MSCPGUGPMUPRUBW
Date   Source Headline
17th Jul 20202:58 pmRNSChange of Name
16th Jul 202012:38 pmRNSResult of EGM and Class Meetings
8th Jul 20207:00 amRNSInvestment Update
24th Jun 20207:00 amRNSNet Asset Value(s)
17th Jun 20203:02 pmRNSHolding(s) in Company
16th Jun 20207:00 amRNSContinuation Vote and Publication of Circular
8th Jun 20207:00 amRNSAppointment of Investment Manager
22nd May 20207:00 amRNSNet Asset Value(s)
5th May 202012:03 pmRNSDisclosure of rights attached to listed securities
30th Apr 20207:00 amRNSConclusion of Strategic Review & Change of Manager
24th Apr 20202:23 pmRNSMonthly Net Asset Value and Covid-19 update
14th Apr 202011:35 amRNSHolding(s) in Company
6th Apr 20204:42 pmRNSSecond Price Monitoring Extn
6th Apr 20204:36 pmRNSPrice Monitoring Extension
3rd Apr 20203:21 pmRNSHalf-Yearly Report
1st Apr 20208:51 amRNSHalf-year Report - Delay in publication
31st Mar 20202:13 pmRNSJanuary and February Net Asset Values
31st Mar 20201:01 pmRNSOutcome of KPMG Review & Release of December NAV
24th Mar 20207:00 amRNSMonthly Net Asset Value and Dividend
18th Mar 202011:32 amRNSUpdate on Dividends
18th Mar 20207:00 amRNSForeign Exchange Hedging
5th Mar 20207:00 amRNSConclusion of a further Anaerobic Digestion plant
25th Feb 20207:00 amRNSBoard Responsibilities
21st Feb 20207:00 amRNSNet Asset Value and Dividend
13th Feb 20207:00 amRNSUpdate on AD Plant Valuation & Strategic Review
12th Feb 20207:00 amRNSMarket Update
5th Feb 202011:25 amRNSHolding(s) in Company
28th Jan 202010:08 amRNSStrategic Review Update
27th Jan 202011:40 amRNSHolding(s) in Company
24th Jan 20207:00 amRNSMonthly Net Asset Value and Dividend
24th Jan 20207:00 amRNSStrategic Review
20th Jan 20208:26 amRNSAnaerobic Digestion Assets
2nd Jan 202010:58 amRNSTotal Voting Rights
20th Dec 20197:00 amRNSNet Asset Value and Dividend
11th Dec 20195:43 pmRNSTransaction in Own Shares
9th Dec 20194:46 pmRNSTransaction in Own Shares
5th Dec 20193:51 pmRNSTransaction in Own Shares (Replacement)
4th Dec 20196:00 pmRNSDirectorate Change
4th Dec 20197:30 amRNSTransaction in Own Shares
2nd Dec 20195:01 pmRNSTransaction in Own Shares
28th Nov 20195:30 pmRNSTransaction in Own Shares
22nd Nov 20197:00 amRNSNet Asset Value and Dividend
21st Nov 20194:21 pmRNSResult of AGM and Class Meetings
28th Oct 20194:02 pmRNSNotice of AGM and Class Meetings
28th Oct 20197:00 amRNSMonthly NAV and Dividend
25th Oct 20192:28 pmRNSHolding(s) in Company
8th Oct 20194:38 pmRNSAnnual Financial Report (Replacement)
2nd Oct 201912:01 pmRNSNet Asset Value and Dividend (replacment)
30th Sep 20197:01 amRNSAnnual Financial Report
30th Sep 20197:00 amRNSNet Asset Value and Dividend

Due to London Stock Exchange licensing terms, we stipulate that you must be a private investor. We apologise for the inconvenience.

To access our Live RNS you must confirm you are a private investor by using the button below.

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.