Capital Distribution

RNS Number : 8907X

NB Distressed Debt Invest. Fd. Ltd

17 January 2014

 



17 January 2014

NB Distressed Debt Investment Fund Limited

Capital Distribution of $48.9m for NBDD and NBDX share classes

The Board of NB Distressed Debt Investment Fund Limited (the "Company") is pleased to announce the maiden capital distributions for the Ordinary Share Class ("NBDD") and the Extended Life Share Class ("NBDX"). The Company has resolved to return a total (before expenses) of $48,885,179 to shareholders:

·      $28,000,000 in relation to the NBDD share class (equivalent to approximately $0.2255 per NBDD share); and

·      $20,885,179 in relation to the NBDX share class (equivalent to approximately $0.0593 per NBDX share).

NBDD Share Class Capital Return

The Investment Period for the NBDD share class ended on 10 June 2013, being three years following the IPO of the Company. As set out in the Company's IPO prospectus dated 5 May 2010, following the investment period, the Company expects to make capital distributions comprising invested capital and capital gains following investment exits.

On the basis of the above, the Company has resolved to return $28,000,000 (equivalent to approximately $0.2255 per NBDD share) to holders of NBDD shares, by way of a compulsory partial redemption of NBDD shares at a price equal to $1.2219 per NBDD share (being the last published NAV per NBDD share prior to this announcement).

The current return comprises (i) the total capital from investment exits from the NBDD portfolio in the period from 10 June 2013 (being the end of the investment period) up to and including 31 December 2013; and (ii) all other cash available to the NBDD share class, save for amounts deemed to be required to meet follow-on investments that may be required to existing positions and cash for working capital requirements. The amount to be applied to the partial redemption of NBDD shares is after the deduction of costs and expenses of this partial redemption, expected to be approximately $8,000.

NBDX Share Class Capital Profits Return

The Company introduced a capital profits return policy for the NBDX share class that was outlined in the Prospectus dated 6 March 2013. The NBDX share class investment period runs to 31 March 2015 and the Company will continue to reinvest the initial capital from exits into new investments during this period. However, during the investment period, any capital profits arising from the exit from any assets attributable to the NBDX share class, will be returned to holders of NBDX shares, at least every six months.

On the basis of the above, the Company has resolved to return $20,885,179 (equivalent to approximately $0.0593 per NBDX share) to holders of NBDX shares, by way of a compulsory partial redemption of NBDX shares at a price equal to $1.2353 per NBDX share (being the last published NAV per NBDX share prior to this announcement).

The current return comprises the total capital profit from investment exits from the NBDX portfolio in the period from 9 April 2013 (being the Admission date of the NBDX shares) up to and including 31 December 2013. The amount to be applied to the partial redemption of NBDX shares is after the deduction of costs and expenses of this partial redemption, expected to be approximately $8,000.

Capital Return Process

The redemption of NBDD and NBDX shares (the "Redemption") will be effected pro rata to holdings of NBDD shares on the NBDD register and the NBDX shares on the NBDX register, respectively, at the close of business on 29 January 2014 (the "Redemption Date"), being the record date for the Redemption.  Approximately 18.45 per cent. of the NBDD issued share capital (that is 18.45 NBDD shares for every 100 held (the "NBDD Redemption Ratio")) and approximately 4.80 per cent. of the NBDX issued share capital (that is 4.80 NBDX shares for every 100 held (the "NBDX Redemption Ratio")) will be redeemed on the Redemption Date.  Fractions of shares produced by the NBDD Redemption Ratio and NBDX Redemption Ratio will not be redeemed and so the number of shares of the relevant class to be redeemed from each shareholder will be rounded down to the nearest whole number of shares.

Payments of redemption monies are expected to be effected either through CREST (in the case of shares held in uncertificated form) or by cheque (in the case of shares held in certificated form) by 12 February 2014. It is requested that certificated shareholders send all of their share certificates to the Company's Registrar. Any share certificates for the balance of the holding will be distributed to shareholders with their redemption monies.

The Company currently has 124,160,471 NBDD shares and 352,088,814 NBDX shares in issue.  All of the NBDD shares and NBDX shares redeemed on the Redemption Date will be cancelled.

The shares will be disabled in CREST on the Redemption Date and the existing ISIN number GG00B64GWK95 for the NBDD shares and the existing ISIN number GG00B9CBV553 for the NBDX shares (the "Old ISINs") will expire.  The new ISIN number GG00BJ05NQ40 for the NBDD shares and the new ISIN number GG00BJ05NR56 for the NBDX shares (the "New ISINs") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions from and including 30 January 2014.  For the period up to and including the Redemption Date, shares will be traded under the Old ISINs and as such, a purchaser of such shares may have a market claim for a proportion of the redemption proceeds following the activation of the New ISINs.  CREST will automatically transfer any open transactions as at the Redemption Date to the New ISINs.

Future Capital Returns

The Company expects the next capital distributions for the NBDD and NBDX share classes for the period from 1 January 2014 to 30 June 2014 to be made in July 2014.

For further information, please contact:

Neuberger Berman Europe Limited Damian Holland Anji Stewart	[phone]
Winterflood Investment Trusts Joe Winkley Neil Langford	[phone]
Oriel Securities Limited Neil Winward Gaudi Le Roux	[phone]

 

END

 

 

MSCGGUUPGUPCGRQ