Cash Exit Facility Offer Redemption Timetable

RNS Number : 8238U

NB Global Monthly Income Fund Ltd

04 August 2022

 

4 August 2022

NB Global Monthly Income Fund Limited

(the "Company")

Updated Cash Exit Facility Offer Redemption Timetable and Portfolio Positioning

The Company announced on 1 June 2022 the implementation of the first tender offer under the cash exit facility described in the shareholder circular published by the Company on 17 August 2020 and approved by Shareholders at the EGM of the Company held on 8 September 2020. Following this, the Company published to Shareholders on 16 June 2022, a circular containing details of the first tender offer under the Cash Exit Facility (the "Cash Exit Offer").

Terms used and not defined in this announcement shall have the meaning given to them in the circular to Shareholders published by the Company on 16 June 2022 (the "Circular").

Updated Redemption Timetable

As detailed in the Circular, the expected timetable for redemption of the proceeds of the Cash Exit Offer estimated that Redemption Proceeds would be paid in two instalments:  1 September 2022 for assets with higher settlement liquidity and 23 November for assets with lower settlement liquidity.

Following faster than anticipated settlement of trades, the Company now has sufficient cash available to fund the Redemption Proceeds in full. Therefore a single Redemption Proceeds payment will be made to eligible Shareholders on 8 August 2022. 

In respect of future tenders, the Board intends to maintain a more conservative stance on indicating speed of repayment, but will make every effort to expedite payment ahead of any published schedule. 

Portfolio Positioning

All trading activity required to fund the Cash Exit Facility Offer was conducted in July with the vast majority (over 95%) being completed by 15 July 2022. The tables below show selected portfolio metrics as of 29 July (July month-end). Investors should note that the portfolio sectoral weightings currently are not materially different from the pre-tender portfolio, and any changes have been driven by investment considerations and not for reasons of liquidity.

Asset Allocation as of 29 July 2022[1] (with 30 June comparison)

	30 June 2022	29 July 2022
Global High Yield	24.88%	23.77%
Global Floating Rate Loans	29.08%	27.12%
Traditional Credit	53.96%	50.89%
Private Debt	24.24%	26.26%
Special Situations	9.29%	11.74%
CLO Debt Tranches	12.51%	11.11%
Alternative Credit	46.04%	49.11%

Asset Type as of 29 July 2022 1 (with 30 June comparison)

	30 June 2022	29 July 2022
Fixed Rate	34%	33%
Floating Rate	66%	67%
Unsecured	22%	19%
Secured	78%	81%

Note that the move higher in allocation to Special Situations from 9.3% to 11.7% as of 29 July 2022 is in large part explained by the impact of market movements as opposed to trading activity related to the Cash Exit Facility Offer. The effect is similar to that noted within the 30 June 2022 factsheet the section of which is included below for reference:

"The overall Fund exposure to floating rate assets is at 65%, with an average duration of 1.7 years. During the month the weight of holdings in Special Situations grew at the expense of Global High Yield, the weight of Private Debt, CLO Debt Tranches and Global Floating Rate Loans remaining broadly flat over the month. The performance of Western credit markets continued to be poor as investors expected interest rates would continue to rise in the face of sustained high levels of inflation and supply chain disruption, economic data pointing to a potential cooling of growth adding to people's concerns. Turnover in the portfolio was lower than average during the period, partly due to the ongoing subdued primary market, although we did continue to capitalise on opportunities to add to more defensive issuers which had been caught up in the wider market malaise"

Enquiries:

Neuberger Berman Europe Limited (Manager) Elizabeth Papadopoulos	[phone]
Numis Securities Limited (Broker) Hugh Jonathan Matt Goss	[phone]
KL Communications (PR) Charles Gorman	[phone]
Sanne Fund Services (Guernsey) Limited (Company Secretary) Matt Falla Gemma Woods	[phone]

LEI: 549300P4FSBHZFALLG04  

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[1] Based off preliminary data from BlackRock

 

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