John Laing Infrastructure Share Discussion Threads

[skinny] 06/9/2013 07:02

Highlights

· Proposed capital raise of up to 218.29 million Shares raising between £100 million and approximately £240 million (gross)
· Proceeds to be used to refinance existing bank facility and to acquire a new portfolio of three PPP projects for £103 million
· In line with stated strategy of buying low risk, high quality assets to deliver a stable and secure income stream

[bigmike100] 05/9/2013 18:07

Cheers Drewz and jonwig I have been away and could read your posts but couldn't reply. First chance today. Thanks again.

[jonwig] 01/9/2013 15:03

Bigmike - just to add to drewz's answer - if your shares are held by a broker in a nominee account, they may or may not offer the scrip alternative.

My own broker (TD Direct) does, and the shares are in an ISA. So I take the shares (scrip) alternative as it's free of brokerage (and stamp duty if that ever applies). Easier than cash which will earn 0% until reinvestment!

So suggest you ring your broker if you're interested in this. I think you need to decide pretty quickly.

[drewz] 01/9/2013 14:29

'scrip' = city shorthand for 'subscription' i.e. where new shares are taken in lieu of a cash dividend.

Most large (e.g. FTSE250) companies offer this facility.

[skinny] 29/8/2013 07:13

JLIF Limited (the "Company" or "JLIF"), the listed infrastructure investment company, is pleased to announce the acquisition of an additional 5% stake in in LUL Connect (CityLink).

Connect is a 20 year concession which runs until November 2019, to upgrade and operate London Underground Limited's radio and telecommunications systems.

The acquisition, sourced from co-shareholders, which completed on 28 August 2013, takes JLIF's total ownership to 33.5%.

[irkin] 28/8/2013 22:22

Want to get in here but the premium remains frustratingly high. Personally hoping placing depresses share price - 110p would be nice:-)

[jonwig] 28/8/2013 10:29

LOL - that's what a blue name does for you!

I do think the placing price will be higher than 110p, their fair value assessment.

[jonwig] 28/8/2013 09:07

JLIF has been downgraded by Oriel. A long article here explains why:

ht tp://www.i i i.co.uk/articles/111941/broker-downgrades-expensive-john-laing-infrastructure-fund

Of course, it's the premium to NAV!!

[ADVFN doesn't like the site: fill the gaps!]

[jonwig] 27/8/2013 07:36

At, say, 113p they would we offering overall 1:5 though it might be structured differently - say 1:10 plus an agreed placing.

The price will be determined by a poll of institutions and private investors will take it or leave it.

[skinny] 27/8/2013 07:29

I agree - my appetite here is currently sated.

[jonwig] 27/8/2013 07:26

So the expected fundraising! Maybe around the £123m short-term debt figure mentioned.

I'm a bit reluctant to add more funds when the share price is currently at a 13% premium to NAV. The last placing was at 114.5p in June.

[skinny] 27/8/2013 07:07

The Board of JLIF, the FTSE 250 international PPP infrastructure investment company, is pleased to announce that it intends to proceed with a Placing, Open Offer and Offer for Subscription of Ordinary Shares (the "Issue") in the coming months.

The Company announced on 23 August 2013, that it had completed on the £123 million portfolio acquisition from Investors in the Community LP, the largest since the fund's launch in 2010, and has entered in to an agreement to acquire an additional 5% in LUL Connect (CityLink). The Company has approximately £123 million drawn on its existing bank facility and is seeking to refinance this by the proposed Issue.

JLIF benefits from the First Offer Agreement into which it has entered with John Laing giving it the right of first offer to a significant pipeline of infrastructure projects. The Company is confident that further investment opportunities matching the Company's stringent investment criteria will become available to JLIF in the near future, from the John Laing pipeline, the wider market and further stakes in existing investments.

The Board is keen to avoid holding material excess cash balances so as not to act as a drag on shareholders' returns. Accordingly, the Issue will be limited in size to the aggregate of (i) the Company's funding requirements at the time of publication of the prospectus and (ii) the consideration payable for further investments made or expected to be made by the Company (whether on a conditional or unconditional basis). The inclusion of an Open Offer will ensure, as with previous follow on fundraisings with a prospectus, that the Issue is reserved in the first instance exclusively for shareholders.

In light of JLIF's current level of drawn debt, and in anticipation of further investments being made, it is the Board's intention to publish a prospectus in relation to the Issue. Further details on the quantum of the offering will be published in due course, however, it is expected that a prospectus will be published in September 2013 with the new Ordinary Shares being issued and admitted to trading in October 2013.

[skinny] 27/8/2013 07:05

Strong performance over reported period

· Portfolio value increased 4.9% on an underlying basis to £571.9 million including acquisitions

· NAV increased 1.4% to £550.0 million including equity raised of £35.0 million

· NAV per share (post dividend) up 1.0% to 106.8 pence

· Continued strong cash flows from the Portfolio

· Interim dividend of 3.125 pence per share, annualised 6.25 pence per share

· Profit after tax of £21.4 million on an investment basis


Operational Highlights

· Acquisition of additional stake in the E18 road project and a new acquisition of a 30% stake in Peterborough Hospital

· Successful refinancing of revolving credit facility of £150 million

· Post balance sheet events: Successful tap issue of £35 million; acquisition of a portfolio of 11 new operational assets from Investors in the Community LLC, the fund's largest acquisition since launch; and agreement to acquire an additional stake in LUL Connect (CityLink).

[drewz] 19/7/2013 13:26

Same here too Spangle.

[bigmike100] 19/7/2013 10:33

Same here spangle

[spangle93] 17/7/2013 19:02

Cheers jonwig. Bought about 8 months ago, intended as a very long term hold with good yield and hopefully some degree of safety, hasn't disappointed so far

[skinny] 17/7/2013 17:28

Thanks jonwig.

[jonwig] 17/7/2013 17:13

A regular on Telegraph's 'Questor' column, which seems to have changed from 'buy' to 'hold'.
I'm inclined to agree.

[bigmike100] 12/7/2013 20:51

Thanks jonwig much appreciated

[jonwig] 12/7/2013 17:50

Bigmike - just an observation that JLIF are issuing a lot of shares at the moment, and the issue premium is getting a bit smaller - still a premium, of course!

Also HICL are in the same mind, and "The Renewables Infrastructure Group Limited" is coming to the market before end-July for £300m.

So basically institutions are still keen on the sector, but they seem to be demanding a better price.

[bigmike100] 12/7/2013 13:22

jonwig thanks for the reply. I am not a total novice but still classify myself as a beginner. "suggests a bit of indigestion to me" I would be grateful if you would expand.

[jonwig] 12/7/2013 11:07

Latest NAV about 105p, issue of new shares at about 112p, current share price 119p at open today. Last issue was at 114.5p.

Suggests a bit of indigestion to me!

[bigmike100] 12/7/2013 10:44

Got to be good. Any thoughts why share price is down slightly.