Portfolio Update

RNS Number : 6956U

NB Global Floating Rate Income Fund

29 December 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 gross proceeds from the issue of C Shares on September 30, 2011.

As at December 21, 2011, the Company had invested approximately 94% of the net proceeds of the C Share issue. The Investment Manager believes that it remains on target to invest the remainder of the net C Share proceeds by early January, within the targeted three months outlined in the C Share Prospectus dated 7 September 2011 (the "Prospectus").  The C Share Portfolio has therefore satisfied the percentage investment condition set out in the Prospectus, and the Company expects that the conversion of the C Shares to ordinary shares ("Conversion") will take place shortly after the next quarterly dividend is announced in early January.  Conversion will be calculated on the basis of the relative Net Asset Value at the time post the distribution of the dividend attributable to each class of shares.  A further announcement in respect of Conversion will be made in due course.

Portfolio Update

The Company has invested in 91 companies across 27 industries. The currency breakdown of these investments is 84.8% US Dollars and 9.2% Euros, as at December 21, 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 companies with near term maturities trading at an attractive discount to par. The average purchase price of the assets was 96.2% of par value, while the current bid price of the portfolio at December 21, 2011 was 96.7% of par value. These loans have been acquired at attractive yield to maturities but the vintage (pre-financial crisis of 2008) of these loans means that they tend to have low current yields, given the lack of LIBOR floors.  The gross running yield on the committed capital is therefore 5.45% as at December 21, 2011, with a yield to maturity of 6.36%.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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