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QuotedData’s morning briefing 15 July 2022

In QuotedData’s morning briefing 15 July 2022:

  • HICL Infrastructure’s (HICL’s) fundraising, announced on 8 July 2022, has raised £160m. HICL says that there has been strong support for the issue from both existing and new investors, including over £5m of demand from the retail offer through PrimaryBid, and a scaling back exercise has taken place (HICL is issuing 94,674,560 shares at an 169.0p). The proceeds of the issue will be used to restore capacity within HICL’s £400m revolving credit facility and provide additional financial resources to pursue HICL’s near-term pipeline.
  • Syncona (SYNC) is issuing 2,595,736 new ordinary shares “in satisfaction of realisations under the Company’s long term incentive scheme”. Martin Murphy, Syncona’s CEO, is receiving 993,527 shares, while Chris Hollowood, Syncona’s CIO, is receiving 642,815 shares.
  • Infrastructure India (IIP) says that it has been granted a waiver of the long stop date in relation to the conditional sale of Indian Energy (Mauritius) Limited’s (IEL) assets. IEL, which is a wholly owned subsidiary of IIP, is an independent power producer that owns and operates wind farms at two sites in the states of Karnataka and Tamil Nadu. IEL holds each wind farm asset within separate Special Purpose Vehicles (SPV), Theni and Gadag, which are its only assets. As announced on 28 February 2022, IIP entered into an agreement for the conditional sale of its 100% interest in each SPV to AVSR Constructions (AVSR), for a total consideration of INR 550m (approximately £5.8m) and the transaction is structured with the separate sale of each SPV. As announced on 20 April 2022, AVSR agreed to provide an unsecured advance of INR 275m (approximately £2.9m), which is 50% of the agreed consideration for both SPVs. The waiver of the long stop date has been granted by AVSR “as a result of slower than anticipated progress for third party clearance certificates”. IEL must still satisfy the remaining outstanding conditions, including regulatory approvals, to complete the sale of the SPVs, whereby the balance of the consideration will be transferred to IEL. IIP’s lenders have waived the requirement to pay down a proportion of the Company’s debt. The completion of the transaction is expected in the coming weeks. IIP says that its creditors continue to be supportive, however, should the outstanding conditions not be met by IEL and consequently the sale not proceed, IIP will not have adequate funding to meet its liabilities when they fall due and will need to identify other sources of financing.
  • Hg, the Manager of HgCapital Trust (HGT), has announced that it has agreed a partial sale of Intelerad, a global provider of enterprise medical imaging solutions, to TA Associates, a global growth private equity firm. While the terms of the transaction have not been disclosed, Hg says that it will retain a significant position in the business and the transaction is expected to close in the third quarter of 2022, pending the customary regulatory approvals. This transaction values HGT’s investment in Intelerad at approximately £87.1m, which represents an uplift of £10.8m (14% or 2.4 pence per share) over the carrying value of £76.3m in the HGT’s NAV at 31 March 2022. Based on the 31 March 2022 reported NAV, the pro-forma NAV of the Trust is expected to be £2.1bn (or 458.3 pence per share). HGT’s available liquid resources, which includes the undrawn bank facility of £250m for future deployment (including all announced transactions) is estimated to be £482m (23% of the 31 March 2022 NAV of £2.1bn ). HGT says that it will be releasing its June 2022 interim results on the 12th September 2022.
  • Warehouse REIT (WHR) has updated its debt facilities to hedge against rising interest rates. The group has taken out two interest rate caps of £100m each for three and five years respectively which serve to cap the SONIA rate in the company’s debt facilities at 1.5%. These are in addition to the two existing £30m interest rate caps the company has in place, which expire in November 2022 and 2023 and have caps at SONIA rates of 1.5% and 1.75% respectively. The moves comes after the company drew down a further £63m from its revolving credit facility (RCF) to fund its acquisition of Bradwell Abbey Industrial Estate in Milton Keynes (announced in April). Following these amendments the company has total debt facilities in place of £345m, with a Loan to Value ratio of 30.1%, which mature in January 2025, with an option to extend for a further two years. Around 75% of this debt is now hedged against interest rate volatility.
  • Town Centre Securities (TOWN) has announced that it intends to return up to £7.4m to shareholders through a tender offer. It proposes that up to 4,000,000 Ordinary Shares be purchased, representing 7.61% of the issued share capital of the company, at a price of 185p per share. This is a 19.4% premium to last night’s closing price of 155p. The company’s share price has climbed 12.9% in early trading.

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