Portfolio update from NB Distressed Debt – NB Distressed Debt (NBDD) has provided a portfolio update this morning; the company’s portfolio is invested across distressed, stressed and special situations investments, with a focus on senior debt backed by hard assets.On 13 June 2013, assets attributable to the company’s ordinary shares were placed into a harvest period. Since then, $132.8m (equivalent to 107% of original capital) has been distributed (income by way of dividend and capital by way of redemption) to shareholders since the realisation phase for this share class began.
Commentary from the manager
The following is the manager commentary that accompanied the company’s update release this morning: “NBDD is in the harvest period and the investment manager is working to restructure, reorganise, and realise exits for each investment to maximise the value of the portfolio for the shareholders. During the harvest period, the investment manager seeks a catalyst for each of the remaining investments that will allow for a realisation and return of capital and profits, if applicable. For regulatory reasons, the final 10% of the total return (NAV plus cumulative distributions) in respect of any class of participating shares in NBDD will be returned to shareholders with a final compulsory redemption of all of the outstanding shares of that class. As such, there will be no further distribution for NBDD until the final distribution to investors and the wind-down of the share class, currently expected in 2020.
The investment manager uses economic, industry and issuer specific data to estimate the gross realisable value in downside, base case and upside scenarios for each investment in the portfolio. It currently estimates the range of the aggregated realisable value for the investments in the portfolio is between 89% and 154% of the 30 September 2019 market values of these investments, with a base case of 124%. Shareholders should, however, note that: (i) the realisable values of the investments are calculated on a gross basis and, in particular, do not reflect the investment manager’s management fee and investment-related expenses; and (ii) this range of aggregate realisable values is an estimate only, and there is no guarantee that the value actually realised will be within this range.
There was one exit during the quarter detailed below in the factsheet (see the official release to access the factsheet). The ratio of total value (capital distributions, dividends and current NAV) to original capital remains at 118%.”
NBDD: Portfolio update from NB Distressed Debt