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Liberum: SDCL Energy Efficiency Income – Proposed £175m capital raise
Mkt Cap £796m | Share price 117.5p | Prem/(disc) 13.6% | Div yield 4.8%
Singer Capital Markets: SDCL Energy Efficiency Income Trust (SEIT) – Proposed equity raise
“Open Offer, Placing, Offer for Subscription and Intermediaries Offer to raise approximately £175 million through an issue of new Ordinary Shares in the capital of the Company at a price of 110.5 pence per share”
STIFEL: SDCL Energy Efficiency Income – Proposed placing of £175m at 110.5p
Given yesterday’s announcement of an increase in the RCF, we are a little surprised that a capital raise has come so quickly. However, given the structure of energy efficiency projects, follow-on investments through organic opportunities are likely to be a persistent theme and hence the likelihood of regular share issuance. The total management fee percentage will also begin to fall as the fee will drop by 0.1% to 0.8% on the incremental amount when the net assets are in excess of £750m, as it will be post the equity issue. (Analyst: Sachin Saggar).