|A little concerned that there has been no update on deployment of thee latest C raise, admitted on 12.12.16.
The previous year's C raise was admitted on 9.11.15, followed by the first dividend announcement on 22.2.16.
Comparing timescales, we're lagging by over a month.|
|@8w - nearly 4 months into the year I guess, so they must have lent more - or does it include the extra they're putting in?
Either way - I've never understood why SQN trades at such a premium to NAV (& continues to do so).
Fortunately it's now at a decent size, so matters less if the market has lost its appetite for more C-share issues.|
|I bailed out once the price started to drop - it doesn't cost much to get back in and who knows where it will bottom as sentiment could be hit for a while|
|Solar Manufacturing lines quoted at £21.3m. 4.01% of portfolio on latest factsheet (31/12/16).
How does that square with figures in RNS (£24.1m.)6.8% of assets ?
Time to cut and run ?|
I expect the share price to fall a lot more especially as the next NAV should be lower.
Yep the company can keep the divi going but this company just looks too good to be true, something just doesn't smell right.|
|Several things interest me greatly about the RNS below:
1. The complications of recovering so-called "secured" monies
2. The timescales
3. That we're not even in a recession - and interest rates are at historic lows
4. That NAV of 99p (& arguably now lower) is still resulting in an share price of £1.12
5. That SQN is a decent player with a long record - wonder how the many other similar co's will fare if/when recession strikes, as it always does eventually.
6. Whether premiums - in some cases, big premiums - are justified for concentrated bank-like stocks
7. Whether the sector should enjoy such easy financing/fundraising
RNS Number : 7131C
SQN Asset Finance Income Fund Ltd
19 April 2017
This announcement contains inside information
19 April 2017
SQN Asset Finance Income Fund Limited
SQN Asset Finance Income Fund Limited (the "Company" or "SQN"), the leading diversified equipment leasing fund listed in the UK provides the following portfolio update.
In August 2015, SQN agreed a 5 year financing arrangement with a US solar cell manufacturing company that was secured against its manufacturing and production equipment and supported by a parental guarantee from a public company. In the NAV as at 28 February 2017, being the last published NAV, the amount outstanding to the Company was $29.9m (GBP24.1m), which represents approximately 6.8 per cent. of the net assets of the ordinary share class.
At the time of the investment, the manufacturer had been producing and selling solar cells at attractive price levels and was positioned to improve its margins even in an environment of predictably decreasing sale prices. However, there has been a rapid decline in the market price for solar cells driven by imports flooding the US markets in contravention of established international trade agreements and in circumvention of tariffs put in place to protect the US solar industry.
The scheduled payment on this investment due to the Company on 31 March 2017 has not been made and SQN was recently notified that, as a result of the impact of the falling solar cell prices and a temporary increase in the cost of production, the manufacturer has suspended production while it seeks redress from the United States International Trade Commission under the Trade Act of 1974, Import Relief for Domestic Industries (the "US Trade Act").
A resolution has been put forward to SQN, pursuant to which, a petition would be made under Section 201 of the US Trade Act which would provide specific relief for a period of four years which, if granted, would enable the investee business to return to trading profitably and make it an attractive acquisition target. In such a scenario, it is expected that SQN would make a full recovery of its principal plus all current and future interest, as well as have an interest in the on-going enterprise.
The Company has reached an agreement with the manufacturer to enter into protective bankruptcy under Chapter 11 of the United States Bankruptcy Code in which SQN will provide an agreed amount of additional financing to the manufacturer under a 'debtor-in-possession' motion and have oversight of the manufacturer while the trade case is being pursued. There is a prescribed timeframe for action under a Section 201 petition which dictates that a resolution should be reached by the end of 2017. At the same time, the Company has made demand for payment under the guarantee from the parent company of the manufacturer.
While there can be no certainty that a favourable decision on the trade case will be reached, the Manager, the Company, the manufacturer, its advisors, its counsel, and certain members of the US government in relevant trade capacities all believe that there is a legitimate case and, as such, the Company believes this presents a more attractive option to pursue than seeking to enforce its security at this time. If a favourable decision is not reached, the Company could experience a principal loss in the event that the amount recovered through the parental guarantee and the proceeds received from the sale of the equipment are less than the outstanding exposure.
The Manager and the Board will continue to monitor the situation closely and review the need for any impairment as the trade case progresses.
It is expected that the Company will not receive income from this investment, which is exclusively part of the ordinary shares portfolio, for 9 to 12 months as this matter is resolved. However, in the absence of unforeseen circumstances, the Company should have sufficient excess income from other investments in the ordinary shares portfolio to maintain its dividend at the current level.|
|Joined the party here - somewhere to park my cash from some high risk assets sold this week...... i'll wait here ready for the crash / realisation Trump's a bloody political idiot. And if it doesn't happen, i'm Very happy with yield.|
joy division still
|New shares begin trading today. Sqnx is ticker.|
|Looking back through the data on ShareScope I reckon that from the issue of the C shares in November 2015 till when they converted to SQN the C shares outperformed SQN by 2%. They didn’t receive all the income that SQN received but this was more than compensated for by them acquiring their premium to NAV.
I intend to apply for more than my entitlement of C shares, however I only became a shareholder a few months ago so I wasn’t around for the last issue of C shares. I would be grateful if anybody can remember what sort of scaling back was applied to the Excess Application Facility and the Offer for Subscription back in the last fundraising in November 2015.|
|Latest C Share Issue:
150M C shares at 100p each (option for 180M).
We have an open offer on basis of 1 C share for every 4 ordinary shares.|
|Just been going through the latest set of accounts and come up with this bit of news.
" In light of the Group's consistent performance and healthy pipeline coupled with strong investor demand recently pushing the share price to an all-time high, I am pleased to say that your Board anticipates raising additional capital before the end of 2016."
So it looks like we will either get a rights issue or the issuing of new shares like the C Share issue. KT.|
|Still not recieved either.
I have another stock that was due to pay out yesterday which i hold with Barclays and AJ Bell.It was payed into the latter on time.Still waiting for Barclays.
Generally happy with Barclays but have had dividend issues in the past with them.
Makes a mockery of the monthly payment though.
Ps did i really put a D in pigeon?|
|Shauney2, just to let you know that I see the pigeon finally arrived this morning. BUT am still waiting on SQNC - issue with tax voucher allegedly!|
|Same problem with Barclays.
They reckon the pidgeon has gone lame.|
|I received mine from IWeb on 21 March too. I think Barclays need more than a nudge.|
|Interesting. Ok thks for that.|
I received my payment on 21 March from the dreadful idealing (one of the few things they have managed to get right recently!), so I'd give Barclays another nudge (funnily enough its an excuse I've heard from idealing before too!)
Seems there are very few brokers worth their salt these days, but it does grate when they're all too happy to charge administration fees, yet can't actually administer the accounts properly.|
|Anyone receive their March divi yet? After 2 weeks, am still waiting. My broker, Barclays, tell me they are still waiting to receive funds from the registrar, who they are chasing. Very poor.|
|What Investment - 24/12/15:
Sarasin: Where to Invest in 2016
Another area we believe offers the ability to diversify a balanced portfolio is asset leasing funds. These funds invest in assets which are leased to businesses, with the aim of providing non-correlated returns, since they are secured by hard assets with a regular cash flow.
We access this asset class via a fund called SQN Asset Finance Income. The fund focuses solely on business-essential assets leased to creditworthy businesses. In doing so, the managers are able to target a dividend of over 7% – clearly very attractive in the current market. The most appealing dynamic, however, is its near zero correlation with both equities and bonds since launch, providing true diversification for a balanced portfolio.
|cheers, Jaws. My allocation with idealing not showing...|
|SQNC started today 101 103|
|They quote a return of 9.5% achieved on their leased assets. Is this after a depreciation charge?
|I've applied for my full entitlement via idealing, but no spare cash in the account to go for any extra, as also been hit with an open offer for another holding of mine (Assura Group) in the same week.|
|IWeb has the Open Offer up now. I can apply for just my entitlement, or my entitlement plus additional shares (but they warn this may be scaled back).|
The 'C' shares also won't be entitled to the dividend of the ords.
They should though start to receive dividends once the company invest the proceeds and the assets start generating an income, increasing each month up to the target distribution (which I presume is 7.25p pa again?). I was impressed how quickly and efficiently they achieved this the first time round, so am hoping this will just be a rinse and repeat process.|