Proposed C Share Issue

RNS Number : 7857W

NB Global Floating Rate Income Fund

31 January 2013

 



This announcement is an advertisement and not a prospectus. Not for release, publication, or distribution, directly or indirectly, in whole or in part, to US persons or into or within the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, Japan, South Africa or any other jurisdiction where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.

31 January 2013

NB Global Floating Rate Income Fund Limited C Share Issue

Further to the announcement on 14 January, the Company has received considerable interest from investors in the Proposed C Share Issue.  As a result of this demand, the Board is pleased to announce a Placing and Offer for Subscription for a target issue in excess of £100,000,000 worth of C Shares at an issue price of £1.00 per Sterling C Share (the "Issue").

The Board, as advised by the Investment Managers, continues to have a positive outlook for the bank loan market.  In the Investment Managers' view, fundamentals remain strong, with corporate earnings strong enough for most issuers to generate free cash flow, whilst defaults remain well below historical averages. Additionally, in their opinion, accommodating monetary policy of global central banks seems likely to continue to drive investors to higher yielding assets in an attempt to boost their returns in the current low interest rate environment.  The Investment Managers believe that the bank loan asset class is therefore likely to benefit, given that it combines the benefits of attractive current yields, low duration and provides some protection against rising interest rates.

The Board believes that the Issue will have the following benefits to Shareholders:

·      Provide additional capital which will enable the Company to benefit from forthcoming investment opportunities in the market

·      Having a greater number of Shares in issue is likely to provide the Shares with additional liquidity

·      Increasing the size of the Company will help make the Company more attractive to a wider shareholder base

·      The Company's fixed running costs will be spread across a wider shareholder base, thereby reducing the total expense ratio

A prospectus in relation to the Issue is expected to be published towards the end of February, and it is anticipated that the Issue will complete ("Admission") before the end of March 2013.

It is expected that the Net Issue Proceeds will be invested in accordance with the Company's investment policy, within three months from Admission.

For further information, please contact:

Neuberger Berman Europe Limited                                                                 [phone]

Damian Holland

Tom Douie

Anji Stewart

Oriel Securities Limited                                                                                   [phone]

Joe Winkley

James Brodie

Neil Winward

Dexion Capital plc                                                                                           [phone]     

Ravi Anand

Katie Standley

www.nbgfrif.com 

This announcement does not constitute or form part of, and should not be construed as, any offer for sale or subscription of, or solicitation of any offer to buy or subscribe for, any share in the Company or securities in any other entity, in any jurisdiction, including the United States, Australia, Canada, Japan, South Africa nor shall it, or any part of it, or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or investment decision whatsoever, in any jurisdiction. This announcement does not constitute a recommendation regarding any securities.

This announcement is an advertisement and not a prospectus and investors should not subscribe for or purchase any shares referred to in this announcement except on the basis of the information in the prospectus to be published by the Company in due course in connection with the admission of the new shares of the Company to the Official List of the UKLA and to trading on the London Stock Exchange plc's Main Market (the "Prospectus"). Copies of the Prospectus will, following publication, be available from the Company's registered office.

The promotion of the Company and the distribution of this announcement in the United Kingdom is restricted by law. Accordingly, this announcement is only addressed to, and directed at (a) persons outside the European Economic Area to whom it is lawful to communicate, and (b) persons in member states of the European Economic Area who are "qualified investors" within the meaning of Article 2(1)(e) of the Prospectus Directive ("Qualified Investors").  For the purposes of this provision, the expression "Prospectus Directive" means Directive 2003/71/EC and includes any relevant implementing measure in each member state of the European Economic Area which has implemented the Prospectus Directive.  In addition, in the United Kingdom, this announcement is directed only at, Qualified Investors (i) who have professional experience in matters relating to investments who fall within the definition of "investment professional" in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005, as amended (the "Order"), or (ii) who are high net worth companies, unincorporated associations and partnerships and trustees of high value trusts as described in Article 49(2) of the Order, and (iii) other persons to whom it may otherwise lawfully be communicated (all such persons together being referred to as "relevant persons").  Any investment or investment activity to which this announcement relates is available only to and will only be engaged in with such persons.  This announcement must not be acted on or relied on (i) in the United Kingdom, by persons who are not relevant persons, and (ii) in any member state of the European Economic Area other than the United Kingdom, by persons who are not Qualified Investors.

This announcement, and the information contained therein, is not for viewing, release, distribution or publication in or into the United States, Canada, Australia, Japan or South Africa or any other jurisdiction where applicable laws prohibit its release, distribution or publication, and will not be made available to any national, resident or citizen of the United States, Canada, Australia, Japan or South Africa. The distribution of this announcement in other jurisdictions may be restricted by law and persons into whose possession this announcement comes must inform themselves about, and observe, any such restrictions. Any failure to comply with the restrictions may constitute a violation of the federal securities law of the United States and the laws of other jurisdictions.

The shares to be issued by the Company (the "Securities") have not been and will not be registered under the US Securities Act of 1933 (the "Securities Act"), or with any securities regulatory authority of any state or other jurisdiction of the United States. The Securities may not be offered, sold, resold, pledged, delivered, distributed or otherwise transferred, directly or indirectly, into or within the United States, or to, or for the account or benefit of, US persons (as defined in Regulation Sunder the Securities Act). No public offering of the Securities is being made in the United States. The Company has not been and will not be registered under the US Investment Company Act of1940 (the "Investment Company Act") and, as such, holders of the Securities will not be entitled to the benefits of the Investment Company Act. No offer, sale, resale, pledge, delivery, distribution or transfer of the Securities may be made except under circumstances that will not result in the Company being required to register as an investment company under the Investment Company Act.

All investments are subject to risk, including the loss of the principal amount invested. Past performance is no guarantee of future returns. All investments to be held by the Company involve substantial degree of risk, including the risk of total loss. You should always seek expert legal, financial, tax and other professional advice before making any investment decision.

Neither the Company, Neuberger Berman Europe Limited, Oriel Securities Limited, Dexion Capital plc their respective affiliates nor any other person (including without limitation, the directors, officers, employees, partners, agents, representatives, members and advisers of the Company, Neuberger Berman Europe Limited, Oriel Securities Limited, Dexion Capital plc and their respective affiliates) undertakes any obligation to update or revise any statement made in this announcement (including, without limitation, any forward looking statements), whether as a result of new information, future events or otherwise.

The information in this announcement contains forward looking statements. Any statement other than a statement of historical fact is a forward looking statement. Actual results may differ materially from those expressed or implied by any forward looking statement. You should not place undue reliance on any forward looking statement, which speaks only as of the date hereof.

This announcement is issued and approved by Neuberger Berman Europe Limited solely for the purposes of section 21(2)(b) of the Financial Services and Markets Act 2000. Neuberger Berman Europe Limited is authorised and regulated in the United Kingdom by the Financial Services Authority.  Registered in England No. 05463227.  Registered address: 4th floor, Lansdowne House, 57 Berkeley Square, London, United Kingdom W1J 6ER.

No information contained in this announcement should be taken as constituting an offer to the public in the Bailiwick of Guernsey (the "Bailiwick") for the purposes of the Prospectus Rules 2008 issued by the GFSC. This announcement is addressed to a restricted number of persons in the Bailiwick who are either (i) persons appropriately licensed under the POI Law; or (ii) persons licensed under the Insurance Business (Bailiwick of Guernsey) Law, 2002, the Banking Supervision (Bailiwick of Guernsey) Law, 1994, or the Regulation of Fiduciaries, Administration Businesses and Company Directors, etc, (Bailiwick of Guernsey) Law, 2000.

 

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