Portfolio Update

RNS Number : 0739R

NB Global Floating Rate Income Fund

31 October 2011

 



NOT FOR RELEASE, DISTRIBUTION OR PUBLICATION, DIRECTLY OR INDIRECTLY, TO U.S. PERSONS OR INTO OR IN THE UNITED STATES, AUSTRALIA, CANADA OR JAPAN.

NB Global Floating Rate Income Fund Limited C Share Update

The board of directors (the "Board") of NB Global Floating Rate Income Fund Limited (the "Company") today announces an update in relation to the Company's investment of the $187 million of proceeds from the issue of C Shares on September 29, 2011.

As at October 26, 2011, the Company had invested approximately 50% of the net proceeds of the C Share. The Investment Manager believes that it remains on target to invest the net C Share proceeds within three months of the listing and admission of the C Shares, as outlined in the Prospectus.

The Company has invested in 67 companies across 25 industries. The currency breakdown of these investments is 93.7% US Dollars and 6.3% Euros, as at October 26, 2011.

The current market environment has provided the opportunity to deploy cash into loans at attractive valuations. This has enabled the Investment Manager to initially focus its attention on acquiring the most defensive names with near term maturities trading at an attractive discount to par. The average purchase price of the assets was 94.9% of par value, while the current bid price of the portfolio at October 26, 2011 was 96.2% of par value. These defensive loans have been acquired at attractive yield to maturities but the defensive nature of these loans means that they tend to have low current yields.  The gross running yield on the committed capital is therefore 4.85% as at October 26, 2011.

The Investment Manager is seeing new issues paying attractive yields starting to come to market again in the US, which, in addition to the higher yielding opportunities also seen in the secondary market, leads the Investment Manager to be confident of achieving the target of a 5% net dividend yield on the C Share portfolio when fully invested. The opportunistic acquisition of loans, maturing in the near term, at an attractive discount to par will further enhance the capital upside in the portfolio. The Investment Manager will continue to consider opportunities to acquire defensive loans at a discount to par to maximise the total returns to shareholders of the Company.

For further information, please contact:

Neuberger Berman Europe Limited	[phone]
Anji Stewart

www.nbgfrif.com

Background Information
The Company is a closed-ended investment company limited by shares incorporated under the laws of Guernsey on 10 March 2011, with registration number 53155. The Company targets an annualised yield per share in the region of 5% (net of fees and expenses) in the first full year of investment, plus some capital appreciation, while seeking to protect investors from rising interest rates. The Company is managed by three experienced portfolio managers backed by an experienced credit team of over 30 investment professionals.

The Company is managed by Neuberger Berman Europe Limited, an indirect wholly-owned subsidiary of Neuberger Berman Group LLC. The Investment Manager has delegated certain of its responsibilities and functions to the sub-investment manager, Neuberger Berman Fixed Income LLC, also an indirect wholly-owned subsidiary of Neuberger Berman Group LLC. To find out more about the Company and Neuberger Berman Group LLC, please visit www.nbgfrif.com.

This document has been prepared by NB Global Floating Rate Income Fund Limited ("NBGFRIF") and is the sole responsibility of NBGFRIF. This document is not intended to be an investment advertisement or sales instrument and does not constitute an offer or an attempt to solicit offers for any securities in NBGFRIF in any jurisdiction.  This document was prepared using the financial information available to NBGFRIF prior to the date of this announcement.  This information is believed to be accurate but has not been audited by a third party.  NBGFRIF does not accept any liability for actions taken on the basis of the information provided herein. Prospective investors are advised to seek expert legal, financial, tax and other professional advice before making any investment decision.

 

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