Capital Distribution

RNS Number : 2830V

NB Distressed Debt Invest. Fd. Ltd

15 April 2016

 

15 April 2016

NB Distressed Debt Investment Fund Limited

Capital Distribution of $4.5 million for NBDD share class and $11 million for NBDX share class

The Board of NB Distressed Debt Investment Fund Limited (the "Company") is pleased to announce a further capital distribution for both the Ordinary Share Class ("NBDD") and the Extended Life Share Class ("NBDX").

The Company has resolved to return a total (before expenses) of $4.5 million to NBDD shareholders (equivalent to approximately $0.1061 per NBDD share) by way of a compulsory partial redemption of NBDD shares at a price equal to $1.1009 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.

The Company has further resolved to return a total (before expenses) of $11 million to NBDX shareholders (equivalent to approximately $0.0442 per NBDX share) by way of a compulsory partial redemption of NBDX shares at a price equal to $0.9453 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.

In the first quarter the Company received a distribution from the sale of a power plant investment in the northeastern United States that was initially announced in late 2015.  This was a post-reorganized equity investment that was purchased in 2011 with the expectation that the plant would ultimately be sold to a strategic buyer looking to increase its footprint in the region.  We recently received a partial repayment of bank debt from the sale of an infrastructure asset in Australia that secured debt that we purchased in 2014.  This transaction was consistent with our original investment thesis with respect to the buyer and timing but at a lower ultimate sales price.  The Fund also received a distribution/return of capital from a residential real estate investment in the western United States that is selling condo inventory.  Cash from these investments, current interest income and periodic dividends from private equity investments continue to fund distributions to investors.

The redemption of both the NBDD and NBDX shares (the "Redemptions") will be effected pro rata to holdings of NBDD and NDBX shares on the NBDD and NBDX registers at the close of business on 28 April 2016 (the "Redemption Date"), being the record date for the Redemptions. Approximately 9.63 per cent. of the NBDD issued share capital and approximately 4.68 per cent. of the NBDX issued share capital will be redeemed on the Redemption Date.  Fractions of shares produced by the NBDD Redemption Ratio or the NBDX 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 13 May 2016. 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 42,345,927 NBDD and 248,457,694 NBDX shares in issue.  All of the NBDD and NBDX shares redeemed on the Redemption Date will be cancelled.

The shares will be disabled in CREST on the Redemption Date and the existing ISIN number GG00BYVJWD00 for the NBDD shares and GG00BYVJWF24 for the NBDX shares (the "Old ISINs") will expire.  The new ISIN number GG00BZBXBX22 for the NBDD shares and GG00BZBXBY39 for the NBDX shares (the "New ISINs") in respect of the remaining shares which have not been redeemed will be enabled and available for transactions after 29 April 2016.  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 [phone] Nick Henderson Robert Bailhache Charles Gorman
Stifel Nicolaus Europe Limited Neil Winward Mark Bloomfield Gaudi Le Roux	[phone]
Winterflood Investment Trusts Joe Winkley Neil Langford	[phone]

 

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