Portfolio Update

RNS Number : 6689Q

NB Distressed Debt Invest. Fd. Ltd

09 August 2010

 



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

9 August 2010

NB Distressed Debt Investment Fund Limited

Portfolio Update

The board of directors (the "Board") of NB Distressed Debt Investment Fund Limited (the "Company") today announces an update in relation to the Company's investment portfolio. The Board is pleased with the progress the investment manager, Neuberger Berman Europe Limited (the "Investment Manager") has made in deploying capital since the launch of the Company in June this year, and the Investment Manager continues to be positive about the opportunities in the distressed debt market.

As at the end of July the Investment Manager had invested approximately 17% of the net proceeds of the IPO in investments in eight companies across industries including: power, telecommunications, lodging and casinos, real estate, food products, transportation and financials.  The average cost of these investments was approximately 61% of original face value.  The Investment Manager remains confident that it will continue to deploy capital on a timeline consistent with that set out in the Company's Prospectus.

The Investment Manager continues to see significant opportunities in the senior and senior secured debt market across a range of industries, and in assembling the portfolio will aim to provide investors with attractive risk-adjusted returns, whilst seeking to limit downside risk through its focus on the senior and senior secured debt of companies with both collateral and structural protection.  The Investment Manager has been pleased with the performance of its proprietary research tools with regard to sourcing and conducting due diligence of investment opportunities.

With regard to the secondary market for the Company's shares post IPO, the Board has been pleased to see the Company's ordinary shares trading at a consistent premium to NAV and notes the value ascribed to the Company's subscription shares and associated turnover since admission.

Over the next few months the Company intends to provide updates to the market on the investment of the IPO proceeds and later in the year will commence quarterly updates with details on performance, asset allocation and market commentary. 

The Board is also pleased to note that there has been considerable interest in the Company both from existing shareholders and investors who were unable to participate in the IPO.  As a result, the Board is contemplating a potential further issue of ordinary shares to satisfy this demand. The Company intends to consult with existing shareholders on this matter and a further update will be provided in due course.

For further information, please contact:

Neuberger Berman Europe Limited Nick Hoar Damian Holland	[phone]
Financial Dynamics Rob Bailhache Nick Henderson Laura Pope	[phone]

www.nbddif.com      

Background Information

The Company is a closed-ended investment company limited by shares registered and incorporated in Guernsey under the Companies Laws on 20 April 2010, with registration number 51774. The Company's primary objective is to provide investors with attractive risk-adjusted returns through long-biased, opportunistic stressed, distressed and special situation credit-related investments while seeking to limit downside risk by, amongst other things, focusing on senior and senior secured debt with both collateral and structural protection.

The Company is managed by Neuberger Berman Europe Limited, an indirect wholly-owned subsidiary of the Neuberger Berman Group. 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 the Neuberger Berman Group. To find out more about the Company and the Neuberger Berman Group, please visit www.nbddif.com.

This announcement has been approved for issue in the United Kingdom for the purposes of section 21 of the UK Financial Services and Markets Act 2000 by Neuberger Berman Europe Limited ("NBEL") which is authorised and regulated by the UK Financial Services Authority.

This document and the information contained herein is not for release, publication or distribution (directly or indirectly) in or into the United States, Canada, Australia or Japan or to any "US person" as defined in Regulation S under the United States Securities Act of 1933, as amended (the "Securities Act") or into any other jurisdiction where applicable laws prohibit its release, distribution or publication. It does not constitute an offer of securities for sale anywhere in the world, including in or into the United States, Canada, Australia or Japan. No recipient may distribute, or make available, this document (directly or indirectly) to any other person. Recipients of this document in jurisdictions outside the UK should inform themselves about and observe any applicable legal requirements in their jurisdictions. In particular, the distribution of this document may in certain jurisdictions be restricted by law. Accordingly, recipients represent that they are able to receive this document without contravention of any applicable legal or regulatory restrictions in the jurisdiction in which they reside or conduct business.

This document has been prepared by NB Distressed Debt Investment Fund Limited ("NBDDIF") and is the sole responsibility of NBDDIF. No liability whatsoever (whether in negligence or otherwise) arising directly or indirectly from the use of this document is accepted and no representation, warranty or undertaking, express or implied, is or will be made by NBDDIF or NBEL or any of their respective directors, officers, employees, advisers, representatives or other agents ("Agents") for any information or any of the opinions contained herein or for any errors, omissions or misstatements. None of Neuberger Berman LLC, Neuberger Berman Fixed Income LLC ("NBFI") nor any of their respective Agents makes or has been authorised to make any representation or warranties (express or implied) in relation to NBDDIF or as to the truth, accuracy or completeness of this document, or any other written or oral statement provided. In particular, no representation or warranty is given as to the achievement or reasonableness of, and no reliance should be placed on any projections, targets, estimates or forecasts contained in this document and nothing in this document is or should be relied on as a promise or representation as to the future.

NBDDIF will not be registered under the U.S. Investment Company Act of 1940, as amended (the "Investment Company Act") and investors will not be entitled to the benefits of that Act. The securities described in this document have not been and will not be registered under the Securities Act, or the laws of any state of the United States. Consequently, such securities may not be offered, sold or otherwise transferred within the United States or to or for the account or benefit of U.S. persons (as such term is defined in Regulation S under the Securities Act) except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act, applicable state laws and under circumstances which will not require NBDDIF to register under the Investment Company Act. No public offering of the securities is being made in the United States.

This document may contain certain forward-looking statements. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. In some cases, forward-looking statements can be indentified by terms such as "anticipate", "believe", "could", "estimate", "expect", "intend", "may", "plan", "potential", "should", "will", and "would", or the negative of those terms or other comparable terminology. The forward-looking statements are based on Neuberger Berman's beliefs, assumptions, and expectations of future performance and market developments, taking into account all information currently available. These beliefs, assumptions, and expectations can change as a result of many possible events or factors, not all of which are known or are within Neuberger Berman's control. If a change occurs, NBDDIF's business, financial condition, liquidity, and results of operations may vary materially from those expressed in forward-looking statements. Some of the factors that could cause actual results to vary from those expressed in forward-looking statements, include, but are not limited to: the factors described in this document; the rate at which NBDDIF deploys its capital in investments and achieves expected rates of return; NBDDIF, NBEL and NBFI's ability to execute NBDDIF's investment strategy, including through the identification of a sufficient number of appropriate investments; the continuation of NBEL and NBFI as investment manager and sub-investment manager, respectively, of NBDDIF's investments; the continued affiliation with Neuberger Berman of its key investment professionals; NBDDIF's financial condition and liquidity; changes in the values of or returns on investments that the Company makes; changes in financial markets, interest rates or industry, general economic or political conditions; and the general volatility of the capital markets and the market price of NBDDIF's shares.

By their nature, forward-looking statements involve known and unknown risks and uncertainties because they relate to events, and depend on circumstances that may or may not occur in the future. Forward-looking statements are not guarantees of future performance. Any forward-looking statements are only made as at the date of this document, and Neuberger Berman neither intends nor assumes any obligation to update forward-looking statements set forth in this document whether as a result of new information, future events, or otherwise, except as required by law or other applicable regulation. In light of these risks, uncertainties, and assumptions, the events described by any such forward-looking statements might not occur. Neuberger Berman qualifies any and all of their forward-looking statements by these cautionary factors. Please keep this cautionary note in mind while reading this document.

 

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