HICL poised to launch share offer

The London-listed infrastructure investment firm, which is advised by InfraRed Capital Partners, is expecting to undertake a share issue in March. The money raised will pay down a revolving debt facility deployed when HICL paid £143m for PPP/PFI assets from Barclays.

HICL Infrastructure Company (HICL), the London-listed infrastructure investment firm, has announced that it intends to proceed with a placing, open offer and offer for subscription of C shares during the first quarter of this year. 

In the firm’s November 2011 interim results statement, it said it would consider undertaking an equity fundraising to pay down its £200 million (€239 million; $314 million) revolving debt facility as and when a material portion of the facility had been deployed. The following month, HICL paid £143.4 million for 26 stakes in public-private partnership (PPP) and Private Finance Initiative (PFI) projects owned by Barclays Infrastructure Funds Management. 

HICL says further details on the timing and amount of the issue will be announced “in due course”. But it added that it “envisaged” a prospectus being issued next month, with C shares being issued and commencing trading in March, followed by the conversion of the C shares into ordinary shares in April.

The firm also said that it was not its policy to be “cash positive to any material extent” and that the issue would therefore be limited in size to the aggregate of i) the group’s current funding requirements, which stand at £135 million, and ii) the consideration for any investments made or expected to be made on or before 30 April, where negotiations are at an advanced stage. 

HICL has 70 PFI and PPP investments in its portfolio in total. It is advised by InfraRed Capital Partners, which spun out from HSBC in April last year and closed an oversubscribed $1.2 billion fund focusing on greenfield infrastructure in October.