Capital Distribution

RNS Number : 7336N

NB Distressed Debt Invest. Fd. Ltd

11 May 2018

NB Distressed Debt Investment Fund Limited

Maiden Capital Distribution of £7 million to NBDG Shareholders

Further Capital Distributions of $16.25 million for NBDX and $3.75 million for NBDD Shares

The Board of NB Distressed Debt Investment Fund Limited (the "Company") is pleased to announce that the New Global Share Class ("NBDG") is making its first capital distribution and that further distributions will be made to Extended Life Share Class ("NBDX") and Ordinary Share Class ("NBDD") shareholders.

The Company'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. Over the last three months, the Company's investments have generated cash in various ways. It received cash generated from repayment of principal on private debt, interest income from credit investments, distributions from private equity positions, and exits.

Cash from portfolio activity, as described above, continues to fund distributions to shareholders. The Company recently received par repayment of a significant bank debt investment in an Australian power company. This cash, combined with existing cash, has allowed it to make the following capital distributions.

NBDG

NBDG was created in March 2014 in order to capture the growing opportunity in distressed debt globally. Its investment period ended on 31 March 2017, following which the harvest period commenced and the investment manager is currently working to restructure, reorganise, and realise exits for each investment to maximise the value of the portfolio for shareholders.

The Company has resolved to make the first capital distribution for NBDG by returning a total of £7 million (before expenses) to NBDG shareholders (equivalent to approximately £0.0709 per NBDG share) by way of a compulsory partial redemption of NBDG shares at a price equal to £0.9467 per NBDG share (being the last published NAV per NBDG share prior to this announcement). The amount applied to the partial redemption of NBDG shares will be after the deduction of costs and expenses of this partial redemption, expected to be approximately £6,500.

A total of £17.5 million (equivalent to 16% of original capital) has now been approved / distributed to NBDG shareholders in the form of share redemptions, income dividends and share buy-backs since entering the realisation phase. The investment manager currently estimates the range of the aggregated realisable value for the investments in the portfolio is between 90% and 165% of the 31 March 2018 market values, with a base case of 133%. It expects to distribute 50-55% of remaining NAV to NBDG shareholders in 2018, 35-40% in 2019, and the remainder in 2020. For more information, please see the Q1 2018 NBDG factsheet published today on the Company's website.

NBDX

The Company has further resolved to return a total of $16.25 million (before expenses) to NBDX shareholders (equivalent to approximately $0.0938 per NBDX share) by way of a compulsory partial redemption of NBDX shares at a price equal to $1.0701 per NBDX share (being the last published NAV per NBDX share prior to this announcement). The amount applied to the partial redemption of NBDX shares will be after the deduction of costs and expenses of this partial redemption, expected to be approximately $8,000.

A total of $217.7 million (or 61% of original capital) has now been approved / distributed to NBDX shareholders in the form of share redemptions, income dividends and share buy-backs since entering the realisation phase on 31 March 2015. The investment manager currently estimates the range of the aggregated realisable value for the investments in the portfolio is between 91% and 164% of the 31 March 2018 market values, with a base case of 132%. It expects to distribute 45-50% of remaining NAV to NBDX shareholders in 2018, 45-50% in 2019, and the remainder in 2020. For more information, please see the Q1 2018 NBDX factsheet published today on the Company's website.

NBDD

The Company has also resolved to return a total (before expenses) of $3.75 million to NBDD shareholders (equivalent to approximately $0.1404 per NBDD share) by way of a compulsory partial redemption of NBDD shares at a price equal to $1.1275 per NBDD share (being the last published NAV per NBDD share prior to this announcement). The amount applied to the partial redemption of NBDD shares will be after the deduction of costs and expenses of this partial redemption, expected to be approximately $8,000.

A total of $125.3 million (or 101% of original capital) has now been approved / distributed to NBDD shareholders in the form of share redemptions and income dividends since entering the realisation phase on 10 June 2013. The investment manager currently estimates the range of the aggregated realisable value for the investments in the portfolio is between 87% and 162% of the 31 March 2018 market values, with a base case of 131%. It expects to distribute 60-65% of remaining NAV to NBDD shareholders in 2018, 35-40% in 2019, and any remainder in 2020. For more information, please see the Q1 2018 NBDD factsheet published today on the Company's website.

John Hallam, Chairman of NB Distressed Debt Investment Fund Limited, commented:

"The Board is pleased that NBDG is making its first capital distribution and also to announce further distributions for NBDX and NBDD shareholders. The first quarter of 2018 has been positive with the Company's investments generating cash in a variety of ways."

"We believe the portfolios retain significant value and the Board will continue to update investors as the harvest periods progress and portfolio activity funds further distributions as the Company seeks to maximise shareholder value."

Shareholder information

The redemption of the NBDD, NBDX and NBDG shares (the "Redemptions") will be applied pro rata to holdings of NBDD, NBDX and NBDG shares on the NBDD, NBDX and NBDG registers at the close of business on 25 May 2018 (the "Redemption Date"), being the record date for the Redemptions. Approximately 12.42 per cent. of the NBDD issued share capital, approximately 8.76 per cent. of the NBDX issued share capital and approximately 7.48 per cent. of the NBDG issued share capital will be redeemed on the Redemption Date. Fractions of shares produced by the NBDD or NBDX or NBDG 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 June 2018. 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 26,714,397 NBDD shares, 173,302,953 NBDX shares and 98,733,585 NBDG shares in issue. All of the shares redeemed on the Redemption Date will be cancelled.

The shares will be disabled in CREST on the Redemption Date and the existing ISIN GG00BF52R043 for the NBDD shares, GG00BF52QZ26 for the NBDX shares and GG00BH7JH183 for the NBDG shares (the "Old ISINs") will expire. The new ISIN GG00BG5NC876 for the NBDD shares, GG00BG5NC983 for the NBDX shares and GG00BG5NCB06 for the NBDG shares (the "New ISINs") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions after 25 May 2018. 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.

For further information, please contact:

Neustria Partners

Nick Henderson

Robert Bailhache

Charles Gorman

+44 (0)20 3021 2580

Stifel Nicolaus Europe Limited

Neil Winward

Mark Bloomfield

Gaudi Le Roux

+44 (0)20 7710 7600

Winterflood Investment Trusts