Hicl Infrastructure Share Discussion Threads

[skinny] 08/5/2013 07:13

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has completed the acquisition of a 33.3% equity and loan note interest (the "Interest") in the HMP Addiewell Prison PFI Project (the "Project") from Royal Bank Project Investments Limited for £10.3m.

The Project is a £74m PFI scheme procured by the Scottish Prison Service to design, build, finance and operate a new maximum security prison at Addiewell, West Lothian, Scotland. The Project reached financial close in June 2006 with construction successfully completed on time at the end of 2008 and the prison officially open for use thereafter. The concession is for a total of 25 years from the end of construction.

[skinny] 01/5/2013 07:10

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has completed the acquisition of a 50% equity and loan note interest in the Tameside General Hospital PFI Project (the "Project") from Balfour Beatty Infrastructure Investments Limited, a subsidiary of Balfour Beatty plc ("Balfour Beatty"), for £16.0m.

The Project is a £78m PFI scheme procured by the Tameside Hospital NHS Foundation Trust to design, construct and commission new-build facilities and associated site infrastructure. The Project reached financial close in September 2007 and is for a term of c. 34 years. Construction of the new facilities was completed on time and on budget by Balfour Beatty.

The works entailed the construction of a new energy center; a new elderly mental and infirm unit; a new Diagnostics and Treatment Centre (DTC); an elevated link bridge between the new DTC and an existing hospital building; a new surface car park; and service infrastructure works. Balfour Beatty WorkPlace is providing hard facilities management services to the Project.

The consideration paid by the Group is in line with the current valuations of similar UK PFI projects in the Group's portfolio and brings the total number of infrastructure investments in the portfolio to 82. The acquisition was funded from the Group's existing cash resources.

[anley] 23/4/2013 10:10

SCHOFIP.........try The Share Centre as they have an excellent dealing and service business. All my dividends are automatically reinvested then I get the contract note in the afternoon and my online portfolio is then updated. Simples!!

I am not a long term holder because fashion in the infrastructure industry can change with politics. If the company were to do another deal which caught the eye of the market then I am a seller or top slicer to leave a stake for next to nothing.

In the meantime the company looks well managed and well financed underpinned by a good yield.

[madengland] 23/4/2013 07:42

Yes indeed jonwig, thanks. Just waiting for an opportunity to jump back in. 125 would be fine please

[schofip] 22/4/2013 13:07

Thanks for all comments.

I think I was sent the message by mistake after the event since was never given a chance to participate.
I have to say I am very impressed with my investment which I entered at 122.8p as a secure income. Does anybody have any thoughts on how high these could go before turning down?.

I was disapointed to find out that Sharetrade do not support dividend reinvestment on this stock. I am considering moving my ISA fund elsewhere.

[jonwig] 22/4/2013 08:15

Madengland - you are right to note that HICL, and other similar companies are trading above NAV.

But the NAV itself is not calculated in the same way as for conventional funds, ie. by mark-to market prices or property valuations, etc. Instead, it's calculated from discounted cash flows over the life of the fund - about forty years.
The cash flows themselves are highly predictable but the discount rate used does vary with gilt yields. So, were gilt yields to rise significantly, the NAV would fall a lot, even though cash flows into the fund would be unchanged in nominal terms.

The current strength of HICL, etc. is more a perception of decent yield and low risk than "NAV watching".

[skinny] 22/4/2013 07:51

Sorry, I thought you were referring to the RNS from Friday.

Its as described in post 128.

I took up the entitlement + more (also in April 2012).

[rik shaw] 21/4/2013 21:29

The open offer and placing referred to took place back in March. Existing shareholders had an entitlement to subscribe to a number of new shares proportional to existing holding as well as the opportunity to subscribe for more. This is all in the past now. Entitlement and placing was at 119.5p and all shares old and new are tradings somewhat higher. There has been similar opportunity to subscribe for extra shares the last couple of years in March- allowing the firm to raise additional funding for investments.

Hope this helps.

rik

[madengland] 21/4/2013 17:13

Looks a bit over priced compared to nav I would say, yield or not

[schofip] 21/4/2013 16:41

Skinny
Thanks for your reply please see actual wording of message


CORPORATE ACTION
The following corporate action is due to take place on a
security that you hold withi
n the Selftrade pooled nominee
account.

Security:
HICL Infastructure Company Ltd Ord Shs 0.01p
Account Type:Shares ISA
Holdings:
xx,xxx
Action Type:
Open Offer (Entitlement)
Action Date:
21/03/2013
Entitlement:
xx,xxx

Terms:
OPEN OFFER The Board of the Company has announced
that each of the Special Resolutions put to
Shareholders at the Extraordinary G
eneral Meeting held on 20 March 2013 were passed. Further information may
follow in due course.
Should you require additional information, please do not hes
itate to contact our custom
er service centre on 0845
0700 720.
It is recommended that the above information be printed for future reference.
Yours sincerely
Simon Watson
Customer Service Manager

[skinny] 19/4/2013 12:47

If you mean it refers to the shares relating to the scrip dividend alternative to the interim dividend - basically for investors who elected to take shares rather than cash.

[schofip] 19/4/2013 12:09

Hi
Must point out I am not an expert in share trading
I bought some of these in March and my Sharetrade account now shows a coporate action relating to an open offer. Does anybody have any information on this i.e. the price or timetable of this offer.

[irkin] 28/3/2013 12:01

"A yield of 5.5%, index-linked is what's driving people into this sort of thing."

Agree but dividend was only raised by 2.2% and their dividend policy going forward not very definitive.

[asmodeus] 28/3/2013 08:01

Rising interest rates will hit bonds more, though....

[jonwig] 28/3/2013 06:40

A yield of 5.5%, index-linked is what's driving people into this sort of thing.

Rising interest rates will hit NAV (via discount rate used), so it could well fall to a more realistic valuation when that happens. Meanwhile we can clip the coupons.

[hezza123] 27/3/2013 23:13

I got some in the placing too, but 'only' got 125.3 for 'em. Can't be too greedy mind. :-)

[deepvalueinvestor] 27/3/2013 22:05

silly season, I dumped all my HICL this morning at 126.6p after buying them in the placing at 119.5p last week. What is going on?!

[jonwig] 25/3/2013 07:17

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has agreed to buy additional equity and loan note interests in the Highlands Schools PFI Project from a subsidiary of 3i Infrastructure plc. This takes the Group's total interests in this project to 100%.

The cost was £21.2m.



The stake was bought from 3i Infrastructure, who announce:

... generates gross proceeds of £21.2 million, representing a premium to the Company's most recent valuation for the investment of £19.4 million (as at 30 September 2012).



Shows an interesting differentiator between HICL and 3IN - HICL doesn't get involved in the construction phase which is riskier and potentially more profitable.

3IN has loads of spare cash, so hasn't held any equity raising in recent years.

(I hold both.)

[skinny] 25/3/2013 07:16

HICL Infrastructure Company Limited ("HICL" or the "Company", and together with its subsidiaries the "Group"), the listed infrastructure investment company, is pleased to announce that the Group has agreed to buy additional equity and loan note interests in the Highlands Schools PFI Project from a subsidiary of 3i Infrastructure plc. This takes the Group's total interests in this project to 100%.

The Highland Schools PFI project is a 30-year concession with the Highland Council in Scotland to design, build and operate eleven urban and rural schools with a total capital value of GBP143m. This all-new build concession runs until 2037.

The total consideration to be paid by the Group for the additional stake is £21.2m and is in line with the current valuation of similar UK PFI projects in the Group's portfolio. The acquisition was funded from the Group's debt facility and takes the Group's funding requirement to £78.7m including the Conditional Investments announced on 26 February in conjunction with the Placing, Open Offer and Offer for Subscription of New Ordinary Shares. The acquisition builds on the Group's strategy of increasing its shareholdings in existing infrastructure investments.

[irkin] 21/3/2013 12:40

"Get yourself a decent broker....."

Thanks for the astute advice but given only the open offer entitlements have been met in full and the excess application allocation has yet to be decided, I fail to see how it can be a problem with my broker.

[jonwig] 21/3/2013 12:04

They've just said the open offer applications were met in full:



I suppose some brokers held back until confirmation.

The placing was over-subscribed. People still want HICL shares!

[anley] 21/3/2013 10:33

Get yourself a decent broker.............

[irkin] 20/3/2013 16:07

I'd better get on to my broker because I haven't received my allocation yet - Thanks

[skinny] 20/3/2013 15:59

They appeared in my HL account yesterday.

[irkin] 20/3/2013 15:50

How were you notified of your allocation?