TIDMSEQI
RNS Number : 4489I
Sequoia Economic Infra Inc Fd Ld
14 December 2020
14 December 2020
Sequoia Economic Infrastructure Income Fund Limited
("SEQI" or the "Company")
NAV update
The NAV for SEQI, the specialist investor in economic
infrastructure debt, increased to 100.27 pence per share from the
prior month's NAV of 98.96 pence per share, representing an
increase of 1.31 pence per share.
The gain in asset valuations this month can be attributed
primarily to the noticeable spread tightening of comparable
investments across the portfolio following the announcement of the
coronavirus vaccines and the US election results.
A full attribution of the changes in the NAV per share is as
follows:
pence per
share
--------------------------------- ---------
October NAV 98.96
Interest income, net of expenses 0.64
FX movements, net of hedges -0.03
Increase in asset valuations 0.70
November NAV 100.27
================================= =========
Update on the effects of COVID-19 on the Portfolio
The Investment Adviser, the Investment Manager, and PWC, the
independent valuation agent, have continued their close analysis of
the effects of COVID-19 on the Company's portfolio which also
includes a market benchmarking exercise to conclude on spread and
yield adjustments for each of the investments. The Investment
Adviser is also closely monitoring the Company's assets that have
not been performing as expected.
Broadly speaking, the spread widening across the portfolio
during the second half of March 2020 continued its reversal
throughout November, with several of the Company's investments
performing better than expectations after the initial and second
lockdown.
Further Portfolio update
As at 30 November 2020, the Company had cash of GBP60.2m and had
drawn GBP80.1m on its GBP280m Revolving Credit Facility. The
Company also had undrawn commitments on existing investments
collectively valued at GBP145.1m. As of 30 November 2020, the
Company's invested portfolio comprised of 61 private debt
investments and 12 infrastructure bonds across 8 sectors and 27
sub-sectors. It had an annualised yield-to-maturity (or
yield-to-worst in the case of callable bonds) of 9.2% and a cash
yield of 6.0%. The weighted average portfolio life is approximately
5.5 years. Private debt investments represented 94% of the total
portfolio and 64% of the portfolio comprised floating rate assets.
The weighted average purchase price of the Company's investments
was 97.0% of par. Investments which are pre-operational represented
11.0% of total assets.
The Company's invested portfolio remains geographically diverse
with 51% located across the US, 16% in the UK, 27% in Europe, and
6% in Australia/New Zealand. Currently the Company is not investing
in Portugal or Italy but has selectively invested in opportunities
in Spain. The Company's pipeline of economic infrastructure debt
investments remains strong and is diversified by sector,
sub-sector, and jurisdiction.
At month end, approximately 98.0% of the Company's NAV consisted
of either Sterling assets or was hedged into Sterling. The Company
has adequate resources to cover margin calls on its hedging
book.
The Company's settled investment activities during November
include:
-- A $30.0m Opco loan to Cardinal States Gathering Company LLC
backed by 7 interconnecting natural gas pipelines throughout the
US;
-- An additional $10.0m Holdco disbursement to CSG Holdings,
which owns 100% of Cardinal States Gathering Company LLC;
-- An additional EUR10.6m disbursement to Care4U Invest, an
Irish residential and day services provider for adults with an
intellectual disability;
-- An additional EUR7m purchase of Ziton AS' 6.90% 2022
first-lien bonds backed by three offshore wind maintenance
vessels;
-- An additional $2m purchase of Navigator Holdings' 8% 2025
bonds, a leading player within the transportation of liquified
gases;
-- An additional $0.4m disbursement to Bourzou Equity, a company
created for a data center in Virginia.
None of the Company's investments were sold or prepaid in
November.
Ordinary Portfolio Summary (15 largest settled investments)
Investment Currency Type Ranking Value Sector Sub-sector Cash-on-cash Yield
name GBPm yield to maturity
(1) (%) / worst
(%)
AP Wireless Telecom
Junior EUR Private Mezz 62.1 TMT towers 4.25 6.25
Hawaiki
Mezzanine Undersea
Loan USD Private Mezz 53.4 TMT cable 9.00 11.32
Warnow Tunnel
Tranches EUR Private Senior 49.4 Transport Road 1.54 4.29
Expedient Data
Centers USD Private Senior 48.1 TMT Data centers 5.67 5.84
Care4U Senior Health
Secured EUR Private Senior 45.3 Accom. care 6.50 6.50
Euroports 2nd
Lien 2026 EUR Private Mezz 44.7 Transport Port 7.92 8.24
Scandlines
Mezzanine
2032 EUR Private HoldCo 43.3 Transport Ferries 0.00 7.67
Bannister
Senior Health
Secured GBP Private Senior 42.1 Accom. care 6.58 6.78
Bizkaia TL Electricity
2021 EUR Private HoldCo 41.1 Power generation 7.78 8.24
Adani Abbot
HoldCo
2021 AUD Private HoldCo 41.1 Transport Port 6.58 14.70
Hawkeye Solar Solar
HoldCo 2030 USD Private HoldCo 40.8 Renewables & wind 9.25 9.25
Jetpeaks
HoldCo Electricity
2027 USD Private HoldCo 39.5 Power generation 7.49 8.02
Kenai HoldCo Electricity
2024 EUR Private HoldCo 39.2 Power generation 0.00 11.71
Terra-Gen
Power Solar
TL B USD Private Senior 39.1 Renewables & wind 5.35 7.20
Tracy Hills TL Residential
2025 USD Private Senior 38.6 Other infra. 8.15 8.15
Note (1) - excluding accrued interest
The Company's monthly investor report and additional portfolio
disclosure will be made available at http://www.seqifund.com/ .
LEI: 2138006OW12FQHJ6PX91
For further information please contact:
Sequoia Investment Management Company +44 (0)20 7079 0480
Steve Cook
Dolf Kohnhorst
Randall Sandstrom
Greg Taylor
Anurag Gupta
Jefferies International Limited +44 (0)20 7029 8000
Gaudi le Roux
Neil Winward
Tulchan Communications (Financial PR) +44 (0)20 7353 4200
Martin Pengelley
Elizabeth Snow
Laura Marshall
Praxis Fund Services Limited (Company Secretary) +44 (0) 1481 755530
Matt Falla
Katrina Rowe
About Sequoia Economic Infrastructure Income Fund Limited
The Company 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.
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END
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