SQN finds new lessor for Snoozebox assets – SQN Asset Finance Income Fund Limited has signed conditional agreements transferring the ownership of Snoozebox Limited, by purchasing it from the Administrator and selling it onward to a new owner which is part of a well-capitalised group experienced in the wider modular accommodation and in the oil and gas industries. Snoozebox, under its new ownership, will then enter into a new operating lease with the company.
A satisfactory restructuring solution with the prior management of Snoozebox was not possible and therefore the company agreed terms with the new owner, who is committed to taking the business forward. The purchase and onward transfer has taken more than two months as the Administrators of the Lessee have sought to achieve the best outcome for creditors (including the company).
The terms of the new Snoozebox lease will reflect an operating lease, extending the term to 10 years with part fixed and part variable rentals. The company’s outstanding balance due from the Lessee is approximately GBP8.20m as at 26 January 2018. It is expected that the new lease will result in full amortisation of capital and payment of interest to the company. Furthermore, this transaction will maintain the brand and retain the two existing contracts and deal pipeline developed by Snoozebox.
The transaction is conditional upon Snoozebox emerging from administration and creditors voting for a company voluntarily arrangement, expected by the end of March 2018.
Commenting on the Lessee transfer, Neil Roberts, the investment manager, said: “There continues to be a strong market for the modular accommodation assets financed by the company, which is confirmed by this transaction. This solution is a good example of how SQN can protect its investment, whilst retaining the integrity of the core business. We are confident this deal will ensure the longevity of the Lessee’s business and result in full amortisation of capital and interest to the company“.
SQN : SQN finds new lessor for Snoozebox assets