SQN Asset Finance Income Fund Ltd NAV, Dividend and Update on C Share Conversion (1040N)

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RNS Number : 1040N

SQN Asset Finance Income Fund Ltd

21 October 2016

21 October 2016

THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION

SQN Asset Finance Income Fund Limited

Net Asset Value, Dividend and Update on C Share Conversion

Net Asset Values

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

Ordinary Shares

As at 30 September 2016, the unaudited estimated NAV per Ordinary Share (cum-income) was 99.57 pence. This includes the 0.6042 pence per Ordinary Share dividend announced on 21 September 2016 that went ex-dividend on 6 October 2016 and will be paid on 24 October 2016. 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 98.97 pence.

C Shares

As at 30 September 2016, the unaudited estimated NAV per C Share (cum-income) was 98.53 pence. This includes the 0.4861 pence per C Share dividend announced on 21 September 2016 that went ex-dividend 6 October 2016 and will be paid on 24 October 2016. 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 98.04 pence.

Dividend

The Company is pleased to announce a dividend of 0.6042 pence per Ordinary Share for the month ended 30 September 2016. The dividend will be payable on 21 November 2016 to holders of Ordinary Shares on the register on 4 November 2016. The ex-dividend date is 3 November 2016.

In light of the C Share Conversion, the Company is not declaring a separate C Share dividend for the period to 30 September 2016. The holders of C Shares will have their C Shares converted to Ordinary Shares prior to the record date for the Ordinary Share dividend on the basis of the Conversion Ratio set out below. Therefore, in relation to the month ended 30 September 2016, holders of C Shares will be entitled to receive 0.6042 pence per new Ordinary Share issued pursuant to the Conversion.

C Share Conversion

Further to the announcement on 14 October 2016, the Board is pleased to announce the Conversion Ratio for Conversion of the C Shares into Ordinary Shares in accordance with the terms set out in the Company's prospectus dated 18 September 2015 (the "Prospectus").

The ex-dividend NAVs attributable to the Ordinary Shares and the C Shares as at the Calculation Time, being 14 October 2016, were 98.71 pence per Ordinary Share and 98.01 pence per C Share. The change in the NAVs since 30 September 2016 reflects the income and expenses accrued and a change in the value of exchange rate hedging which has been impacted by the recent fall in the value of Sterling, which is expected to unwind over time.

Therefore, the Conversion Ratio, as calculated in accordance with the terms set out in the Prospectus, is 0.9929 Ordinary Shares for every one C Share held. Entitlements will be rounded down to the nearest whole Ordinary Share.

On the basis of the Conversion Ratio, a holder of 1,000 C Shares will receive 992 new Ordinary Shares upon Conversion.

The Ordinary Shares arising on Conversion will rank pari passu with, and will have the same rights as, the Ordinary Shares of the Company already in issue, including the right to receive the dividend declared for the month ending 30 September 2016.

Application has been made for 178,722,000 new Ordinary Shares to be admitted to the Official List and to trading on the Main Market of the London Stock Exchange. It is expected that admission will become effective and that dealings in the new Ordinary Shares will commence on 25 October 2016.

The C Shares will be permanently removed from trading on the London Stock Exchange with effect from the opening of trading at 8:00 a.m. on 25 October 2016.

Effective from 25 October 2016, the total number of Ordinary Shares in issue will be 357,707,507 and the total number of voting rights in the Company will be 357,707,507. This figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure Rules and Transparency Rules. No shares are held in Treasury.

Further details of the Conversion and rights attaching to the C Shares are set out in the Prospectus.

The expected timetable for Conversion is as follows:

 
 Record date for Conversion           24 October 2016 
  and C Share register closes 
 Conversion Time and dealings         25 October 2016 
  in new Ordinary Shares commence 
 Crediting of CREST accounts          25 October 2016 
  with new Ordinary Shares 
 Share Certificates in respect        w/c 31 October 
  of new Ordinary Shares despatched    2016 
 

Terms used and not defined in this announcement have the meanings given in the Prospectus unless the context otherwise requires.

For further information please contact:

 
SQN Capital Management 
 Jeremiah Silkowski 
 Neil Roberts                    01932 575 888 
Winterflood Securities Limited   020 3100 0000 
Neil Langford 
 Chris Mills 
Buchanan 
  Charles Ryland 
  Victoria 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.

This information is provided by RNS

The company news service from the London Stock Exchange

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October 21, 2016 02:00 ET (06:00 GMT)