Sequoia Economic Infrast... Share Discussion Threads

[williamcooper104] 17/5/2022 11:55

Good to see a £10m distribution from Bulb

[cocopah] 17/5/2022 11:08

Latest monthly update. It looks as if things are bottoming-out a bit but still a bit of pain to come IMHO. Too early for me to commit more funds because I think the discount to NAV still needs to find a support level.

hxxps://wp-seqifund-2020.s3.eu-west-2.amazonaws.com/media/2022/05/SEQI_Monthly_Report_20220429_C0j3b9En.pdf

[cocopah] 28/4/2022 15:25

Still trying to ascertain how much more bad news needs to be factored in here … if Bulb is worthless then we could see another 1.6% off the NAV before accounting for any damage from the other two loans in trouble. Thoughts?⬇5039;

hxxps://portfolio-adviser.com/sequoia-trust-questions-government-actions-as-value-of-collapsed-energy-supplier-halves/

[speedsgh] 21/4/2022 11:34

Dividend Declaration -

The Directors of the Company have declared that an interim dividend of 1.5625p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 31 March 2022:

Ex-Dividend Date: 28 April 2022
Record Date: 29 April 2022
Scrip Reference Price Announced: 6 May 2022
Deadline for Scrip Elections: 24 May 2022
Payment/Allotment Date: 9 June 2022
Dividend per Ordinary Share: 1.5625 pence per share

Dividends will be paid gross of tax.

[speedsgh] 14/4/2022 08:59

NAV and Investment Update -

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 100.50 pence per share from the prior month's NAV of 100.34 pence per share, representing an increase of 0.16 pence per share. A full attribution of the changes in the NAV per share is as follows:

February NAV: 100.34p
Interest income, net of expenses: 0.61p
FX movements, net of hedges: 0.05p
Decrease in asset valuations: -0.50p
March NAV: 100.50p

Portfolio update

With regards to the ongoing conflict in Ukraine, the Company confirms it has no investments in Russia, Belarus or the Ukraine (none of which is an eligible jurisdiction) and is compliant with the international sanctions imposed on Russia.

As at 31 March 2022, the Company had cash of GBP94.50m and had drawn GBP121.40m on its GBP325m revolving credit facility. The Company also had undrawn commitments on existing investments collectively valued at GBP66.30m. The Company's invested portfolio consisted of 66 private debt investments and 10 infrastructure bonds across 8 sectors and 29 sub -- sectors. It had an annualised yield -- to -- maturity (or yield -- to -- worst in the case of callable bonds) of 7.9% and a cash yield of 6.2%. The weighted average portfolio life is approximately 4.1 years. Private debt investments represented 95% of the total portfolio and 50% of the portfolio comprised floating rate assets. Investments which are pre -- operational represented 13% of total assets.

The Company's invested portfolio remains geographically diverse with 51% located across the US, 17% in the UK, 27% in Europe, and 5% 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 99% 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 Investment Advisor continues to focus on the Company's non-performing loans. In relation to the loans to Bulb and Salt Lake Potash, there is no material news this month, although work towards their resolution is ongoing. In the case of the loan backed by a private school in Washington DC, discussions in relation to a re-capitalisation of the asset have progressed and, when completed, will put the project on a more stable basis. The marks for Salt Lake Potash and the Washington school loan have remained approximately unchanged this month while the mark on the Bulb loan has slightly decreased. We calculate the mark through assessing a variety of different factors each month, some of which have been positive and some negative, with a net result in the mark of Bulb being slightly decreased this month...

[cocopah] 04/4/2022 23:26

Not enough comms about their troubled assets and impaired income for me. See they have ‘strengthened’ their risk management ‘team’ … a bit late IMHO. Next NAV will be interesting. Some saying they can’t understand the fall in the share price … pretty obvious and more to come.🙈ԍ35;‍♂5039;

[gateside] 28/3/2022 15:05

Seems to have found support.Personally I think they will hold the dividend.

[cocopah] 25/3/2022 20:01

Are we thinking that a divi cut may be on the way?

[cocopah] 22/3/2022 18:49

3p from its all time low. I think more comms necessary especially on the bad debts and lower income.🤷R05;♂️

[cocopah] 14/3/2022 16:28

#speedsgh Flat NAV which is probably better than I expected. What do you think of the additional $2.4m lent to SLP to finance them during the restructuring process? I thought the last update talked about that investment being dead in the water.

[speedsgh] 14/3/2022 12:07

NAV and Investment Update -

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 100.34 pence per share from the prior month's NAV of 100.31 pence per share, representing an increase of 0.03 pence per share...

... The Investment Advisor continues to focus on the Company's non-performing loans. In relation to the loans to Bulb and Salt Lake Potash, there is no material news this month, although work towards their resolution is ongoing. In the case of the loan backed by a private school in Washington DC, discussions in relation to a re-capitalisation of the asset continue and, if successful, will put the project on a more stable basis. In each case, the loans' marks this month remain approximately unchanged...

[cocopah] 09/3/2022 17:11

What is everybody’s thoughts about the upcoming NAV update given the government’s recent comments about Bulb?

Also, what impact do you think the loss of income from the three non-contributing investments will be?

[cocopah] 14/2/2022 17:44

Interesting NAV. Presumably the $50m non-coal investment is supporting Generation Bridge’s purchase of PSEGs gas fired power stations. The £30m to Lightspeed Fibre looks a safer bet than the foray into Bulb (the Lightspeed directors seem to have good industry credentials)although much will depend upon the competition when they expand into Norfolk in phase 2.

[speedsgh] 14/2/2022 08:55

NAV and Investment Update -

The NAV for SEQI, the specialist investor in economic infrastructure debt, increased to 100.31 pence per share from the prior month's NAV of 100.00 pence per share, (being the 31 December 2021 cum-income NAV of 101.56 less the dividend of 1.5625 pence per share declared in respect of the quarter ended 31 December 2021), representing an increase of 0.31 pence per share...

[cocopah] 08/2/2022 14:19

I am keen to see what this month’s mid-month update on NAV and interest income reveals. If it’s not as positive as one hopes then it will be interesting to see whether the dividend is maintained at its current level.🤔300; Really tempted to get back in here.

[rik shaw] 31/1/2022 17:21

Non execs thought it was a good time to top up as well:

[chucko1] 31/1/2022 16:01

Funny that - I purchased today on the current weakness having sold out prior. Yes, it's best to avoid exaggerating the issues when the yields on the loan portfolio suggest occasional problems. How they manage (workout) these problems is at least equally important to their frequency.

[williamcooper104] 31/1/2022 15:02

But then when you look at the yields they are getting on their loans you'd expect some level of default

[williamcooper104] 31/1/2022 15:01

I topped up a little today It's not so much the losses on those three assets but whether it reveals anything systemic about their overall underwriting

[wllmherk] 31/1/2022 14:42

Welcome aboard Gateside, I purchased a few last week, great minds and all that,

wllm :)

[gateside] 31/1/2022 13:16

Already a shareholder here.But bought a fair few for my wife's SIPP today, for the dividend. And hopefully a bit of capital growth, as share price is at a 52 wk low.

[winsome] 31/1/2022 11:32

Most recent dividend cover was 1.11x. My calculations suggest that even if the loans to Bulb, the potash company and the DC school were totally written off (hopefully very unlikely) it would still take a few more large write-offs before full dividend cover was breached.

[cocopah] 22/1/2022 17:22

I am satisfied that December’s decrease in the asset value accurately reflects the issues with Bulb. What I don’t understand is how the interest income (net of expenses) has increased from 0.58 to 0.77 (Nov to Dec) given that income is no longer coming in from Bulb and there are two other (albeit smaller) investments in distress. The monthly fact sheet is silent on this. The fund holds sell signals from both short and long-term moving averages (giving a more negative forecast for the stock). Also, there is a general sell signal from the relation between the two signals where the long-term average is above the short-term average. So, on both fundamentals and technicals, I am concerned that the share price will fall below the NAV in the short-term and how sustainable the current dividend is. Thoughts?🤔🤷‍♂;️

[speedsgh] 20/1/2022 12:10

Dividend Declaration -

The Directors of the Company have declared that an interim dividend of 1.5625p per share will be payable to holders of Ordinary Shares as follows in respect of the three-month period ended 31 December 2021:

Ex-Dividend Date: 27 January 2022
Record Date: 28 January 2022
Scrip Reference Price Announced: 3 February 2022
Deadline for Scrip Elections: 18 February 2022
Payment/Allotment Date: 4 March 2022
Dividend per Ordinary Share: 1.5625 pence per share

Dividends will be paid gross of tax.

[cocopah] 18/1/2022 00:20

Better news on the 3 impaired assets, however they are still not generating income (or out-of-the-woods yet). Technically SEQI isstill a sell atm too. 🤔🤔