NB Distressed Debt Invest. Fd. Ltd Portfolio Update - Ordinary Shares (5673O)
29 Mayo 2015 - 1:00AM
UK Regulatory
TIDMNBDD TIDMNBDX TIDMNBDG
RNS Number : 5673O
NB Distressed Debt Invest. Fd. Ltd
29 May 2015
NB Distressed Debt Investment Fund Limited
Portfolio Update - Ordinary Shares
NB Distressed Debt Investment Fund Limited ("NBDDIF") is a
Guernsey-incorporated closed-ended investment company that launched
in June 2010. NBDDIF's primary objective is to provide investors
with attractive risk-adjusted returns through long-biased,
opportunistic stressed, distressed and special situation
credit-related investments while seeking to limit downside
risk.
NBDDIF owns holdings diversified across distressed, stressed and
special situations investments, with a focus on senior debt backed
by hard assets. The portfolio is managed by the Distressed Debt
team at Neuberger Berman, which sits within what we believe is one
of the largest and most experienced non-investment grade credit
teams in the industry.
On 10 June 2013, the investment period of the NBDD Ordinary
Share Class ("NBDD") expired. The assets of NBDDIF attributable to
the Ordinary Shares were placed into run-off following the expiry
of the investment period. The net proceeds from the realization of
such assets will be distributed to Ordinary Shareholders in such
times and amounts as determined by the Board of Directors, with
five distributions having been made in 2014 and so far in 2015.
The Ordinary Shares are one of three classes of shares in
NBDDIF. The other classes are the Extended Life Share Class and the
New Global Share Class, which both offered exposure to new
opportunities in this asset class beyond 10 June 2013. The Extended
Life Share Class is subject to an investment period which ended on
31 March 2015 and the new Global Share Class is subject to an
investment period ending on 31 March 2017. Separate factsheets are
produced for those share classes.
Summary
We remain satisfied with the portfolio's performance to date.
Given the volatility of the distressed debt markets in 2015 to
date, we were gratified to preserve our investors' capital while
exiting positions that contributed positively to NAV. We continue
to see significant upside potential in the existing portfolio,
which we expect to realise as we restructure and exit
investments.
Portfolio
As at 31 March 2015, 88.8% of the NBDDIF Ordinary Share NAV
("NBDD's NAV") was invested in distressed assets. NBDD's NAV per
share decreased 0.3% in the first quarter of 2015, to $1.2483 from
$1.2521 per share. We believe that performance comparison versus
other distressed debt managers is indicated by the HFRI
Distressed/Restructuring Index(1) which returned 0.8% in the first
quarter of 2015. During the first quarter we saw two additional
exits, bringing the total to 29 since inception.
Capital Return
On 27 April 2015, the Board of NBDDIF resolved to return $12.5
million (equivalent to approximately $0.1760 per share) after
expenses to holders of NBDD shares by way of a compulsory partial
redemption of NBDD shares. The current return comprises all cash
available to NBDD, save for amounts deemed to be required for
existing positions and for working capital requirements. This
distribution is expected to be made in the second quarter of
2015.
Exits
In the first quarter of 2015, we saw our 28th and 29th exits
since inception. These exits generated $2.0 million of total return
and gains for NBDD.
Investment 28: We purchased $7.6 million face value of a
defaulted loan at 32.2% of par, secured by an independent living
facility in the Midwest of the U.S. Our investment thesis was that
the underlying real estate was worth an amount significantly in
excess of price of the debt acquisition. Subsequent to our
purchase, we converted the loan into ownership of the property via
a deed-in-lieu of foreclosure and installed a new management team.
After enhancing operations and making incremental capital
improvements, we sold the property. Total return from this
investment was $1.3 million generating an IRR of 10%.
Investment 29: We purchased $4.5 million face value of a
defaulted loan at 59.12% of par, secured by a condominium
development located in the South of the U.S. Our investment thesis
was that the underlying real estate was worth an amount
significantly in excess of price of the debt acquisition.
Subsequent to our purchase, we converted the loan into ownership of
the property via foreclosure and commenced selling units.
Ultimately all units and the associated land were sold. Total
return from this investment was $0.7 million generating an IRR of
17%.
Data as at March 31, 2015, unless otherwise stated. Past
performance is not indicative of future returns. All comments
unless otherwise stated relate to NBDD.
1. The HFRI Distressed/Restructuring Index reflects distressed
restructuring strategies which employ an investment process focused
on corporate fixed income instruments, primarily on corporate
credit instruments of companies trading at significant discounts to
their value at issuance or obliged (par value) at maturity as a
result of either formal bankruptcy proceeding or financial market
perception of near term proceedings (provided by Hedge Fund
Research, Inc.).
-ENDS-
For further information please contact:
Neuberger Berman Europe Limited +44 (0)20 3214 9000
Damian Holland
Financial Dynamics +44 (0)20 7269 7297
Neil Doyle
Ed Berry
Laura Ewart
An accompanying factsheet on the information provided above can
be found on the Company's website www.nbddif.com. Neither the
contents of the Company's website nor the contents of any website
accessible from hyperlinks on the Company's website (or any other
website) is incorporated into, or forms part of, this
announcement.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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