Sequoia Economic Infrast... Share Discussion Threads

[scburbs] 11/10/2022 16:06

No material recovery expected from Bulb sale, it has lost a fortune and the government funding of those losses will be super senior which means the government will get the sale proceeds, but still shown as losing £4bn!

Any recovery would be from the parent company who was receiving cash from Bulb (e.g. royalties, employee costs) and has some other assets/claims.

[cocopah] 10/10/2022 15:56

I’m not sure of the detail but I thought that we were unlikely to see a haircut. Either way I thought this was helpful reading from Proactive:

I bought another tranch (which I jumped in to buy before the slide to 83p). Anyone who got in at that price has got a cracking deal IMHO. I think my average is about 87p.👍ㇿ5;😎

[catch007] 09/10/2022 10:29

I note press comment today that Octopus Energy are pushing to close the acquisition of Bulb Energy. This would resolve the SEQI loan issue (though there may be a haircut on value). The other two known loan issues are both being managed out so looking encouraging. I bought another tranche at 83.5p recently as this seemed over sold and yield attractive.

[cocopah] 29/9/2022 21:03

NAV update is usually 10 working days from the first day of the month. Interesting to see whether they have received any further payment from Bulb and what if anything the recent market turmoil has done to asset valuations. Unless there has been any deterioration in any of the loans (i.e. defaults) then I assume the income received to cover the dividend will actually be increasing as the new loans granted will be on a wider margin.🤷R05;♂️

I already bought Mor prior to the Wednesday mini-crash and still think that the reasons for doing so are still valid.🤔

[zeppo] 29/9/2022 15:18

NAV and portfolio update in about two weeks according to a company spokesperson.

[spoole5] 29/9/2022 14:37

Some chunky director buys

[zeppo] 28/9/2022 21:18

26th Sep 2022 Transaction in Own Shares

23rd Sep 2022 Transaction in Own Shares

22nd Sep 2022 Transaction in Own Shares

21st Sep 2022 Transaction in Own Shares

19th Sep 2022 Transaction in Own Shares

16th Sep 2022 Transaction in Own Shares

15th Sep 2022 Transaction in Own Shares

14th Sep 2022 NAV and Investment Update

14th Sep 2022 Transaction in Own Shares

13th Sep 2022 Holding(s) in Company

13th Sep 2022 Transaction in Own Shares - Replacement

13th Sep 2022 Transaction in Own Shares

12th Sep 2022 Transaction in Own Shares

9th Sep 2022 Transaction in Own Shares




14th Sep 2022

July NAV 97.21

August NAV 96.74

About 17 million shares seem to have been cancelled and held in treasury since the July Results.

Added yesterday.

Content to hold through these turbulent times.

[gateside] 28/9/2022 19:43

With the continual decline in the sp, the yield is up to 8.1% now

[cocopah] 28/9/2022 19:10

Difficult to pinpoint the specific reasons for the general malaise that has hit infrastructure shares. If pension funds have been liquidating their holdings prior to the BOE intervention then this would explain some of it, as they will have an asset allocation which includes infrastructure shares. I also guess that we face heightened risk of defaults or distressed loans in the current climate and of course it’s also possible to get a risk free 4%+ return now elsewhere. 🤷‍a94;️🤔

[gateside] 27/9/2022 07:17

rik shaw - thanks

I have edited my post, so it is now correct.

Currently yielding 7.5%

And that dividend looks reasonably safe in my opinion.

[rik shaw] 27/9/2022 07:13

Above post (264) should read 'Yield now up to 7.5% at a buy price of 83p

[williamcooper104] 26/9/2022 23:52

Lowish duration so should soon benefit from higher rates

[gateside] 26/9/2022 22:47

Trading on a 14% discount to NAV

Yield now up to 7.5% at a buy price of 83p

Tempted to switch one of my other holdings into SEQI, as it looks undervalued

[cocopah] 14/9/2022 16:23

Nothing unexpected in the NAV. Looks like all the bad news from the current three loans that are technically ‘under the water’ is now baked in. I agree it looks as though they are being Conservative which bodes well for the future NAV updates. I would imagine that the board will continue to repurchase shares whilst the share prices at this level.

[spoole5] 14/9/2022 11:22

Looks like they are being conservative on recovering the value from these

[speedsgh] 14/9/2022 11:10

Further slippage in NAV from 97.21p to 96.74p as at 31/8/22...

NAV and Investment Update -

There has been significant progress over the past month in relation to the Company's non-performing loans:

• Salt Lake Potash: the process to sell the business has reached a conclusion, subject to customary condition precedents to closing. This will result in the Company exiting its positions apart from a small residual interest in a super senior guarantee facility (as noted above). The recovery on our loans in the short term will be less than we had anticipated but we expect to receive further recoveries over time through a profit-sharing mechanism agreed with the purchaser. For the time being however on the grounds of prudence we have attached no value to our profit sharing rights. The full effect of the restructuring sale has been reflected in this month's NAV.

• Whittle School: the borrower has continued the execution of its strategy for the property. The value of this loan has been written up this month following a successful court process by the borrower to obtain vacant possession of the building. Further information will be provided as matters progress.

• Bulb Energy: the administrators of Simple and Bulb continue to progress the M&A process, and we will be able to update investors once that concludes. Our mark on this loan has remained unchanged this month.

[spoole5] 08/9/2022 07:08

Buying back again. No brainer

[spoole5] 30/8/2022 12:10

In here this morning, seems as good a place as any at the moment

[cocopah] 12/8/2022 17:36

All quiet on the western front as far as the NAV update is concerned. I think we might see a little bump in the share price once the Bulb issue is sorted. Happy that they are supporting the share price through buybacks at the moment. Doesn’t look as if there’s much decent additional lending to be done at the moment.

[catch007] 30/7/2022 15:58

Only 1 bidder for BULB - Octopus Energy hopefully goes ahead and the SEQI loan is repaid.

[gateside] 29/7/2022 21:58

NAV updates are usually around the 14th of each month. So just a couple of weeks to go.They certainly seem confident that this is currently undervalued.

[cocopah] 29/7/2022 20:51

#Gateside another big director buy and a string of share buybacks … interesting to see what the next NAV update is and what’s happening to the three NPAs.👍ӿ95;😎

[gateside] 15/7/2022 08:34

With those directors buys, yield over 7% and the large discount to NAV, maybe 83p will prove to be the bottom.

[cocopah] 14/7/2022 18:45

A few sizable director buys today!

[cocopah] 14/7/2022 10:33

#Gateside yes quite a discount! Kicking myself that I re-entered a little too early but I do believe that this will turn during the year. At least I made a small profit when I sold the shares at 1.09 before the drop. I should’ve followed my charts and waited, heh-ho. As an income investor the current market is tough and I had some funds to recycle from GSK. Latest NAV update today not really much different from the May update. The dividend should be safe because the cover has increased and will probably continue to do so. Perhaps they will buy some more shares back, although the amount they bought wasn’t really significant. 🤷‍a94;️