After another long pause, NBDD has once again started to make a few NBDG buybacks. 2x20k @ 78.5p last week; followed by 40k @ 78.5p yesterday.
Obviously the right thing to do as at 78.5p the discount is 16.6% to the 7th Aug'17 NAV of 94.11p... |
First buyback for quite some time:
=================================
13 February 2017
NB Distressed Debt Investment Fund Limited
Transaction in Own Shares
The Company announces that pursuant to the general authority granted by shareholders of the Company on 24 August 2016 to make market purchases of its own New Global ordinary share capital ("New Global Shares") it repurchased 50,000 New Global Shares at a price of 79.90 pence per New Global Share, to be held in Treasury, on 10 February 2017. This represents approximately 0.045 per cent of the Company's current issued New Global Shares. |
New global share class announced. Minimum subscription £25,000. A bit steep! |
Europe is ripe for a surge of leveraged buyout restructurings as banks sell their worst-performing loans to "distress investors" eager to take over the borrowers.
NBDD have already announced a new share class to target this. |
Thanks - but I don't subscribe (I used to) and it won't let me in.
No worries - I think I know his pov. |
Recommended by David Stevenson in Moneyweek |
 Portfolio update - further investment extension which looks promising:
The Board of NBDDIF, after discussions with the Investment Manager, believes that opportunities in the distressed market remain compelling and that an extension to the investment period should enable the company to access attractive investment opportunities after the current investment period expires. On 23 January 2013, the Board announced, following consultation with its major shareholders, its intention to propose an extension to the company's investment period (the "Proposed Extension".) The existing investment period is due to expire in June 2013 and it is intended that a proposal be made to ordinary shareholders in the company ("Shareholders") to extend the investment period by 21 months to 31 March 2015. Those investors who wish to remain invested on the basis of the current investment period will be given the opportunity to do so. Having consulted with its major shareholders, the Board is confident that a majority of the Shareholders will support the Proposed Extension. It is intended that the share class subject to the extended investment period will be subject to a new capital return policy, new discount policy and increased preferred return. For further information on these and other aspects on the Proposed Extension, please see the company's release of January 23rd 2013.
Further details of the proposal will be provided in a prospectus and circular to Shareholders expected to be issued in March 2013, with a class meeting of Shareholders expected to be held in April 2013. |
I guess you will have the option of converting into the new shares. I like the fact that the hurdle rate before they get their bonus is increase to 8% per annum especially as on the face of it they are not achieving their current 6% per annum based on gross investment cost at the moment. Suggests that more upside in the pipeline. The fact that they are promising to return 100% of any profit to shareholders when it is realized also makes these more attractive for me. |
OK, good stuff ... maybe!
Key bit, I think:
The existing investment period is due to expire in June 2013 and it is intended that a proposal be made to ordinary shareholders in the Company ("Shareholders") to extend the investment period by 21 months to 31 March 2015. It is intended that a new share class will be introduced with one class remaining subject to the current investment period and the other being subject to the extended investment period. Those investors who wish to remain invested on the basis of the current investment period will, therefore be given the opportunity to do so. The Board can confirm that no further extensions to the investment period will be proposed to shareholders in the future.
This suggests to me that the new shares will be different "C shares?" and that existing holders will be able to participate - ie. open offer or something. Will that exclude ordinary PIs? (It has happened - a minimum subs level.)
Anyway, existing holders won't be diluted, seems to be the reading. |
Thanks for sharing that jonwig. I guess that explains the recent strength. |
Citywire:
NB Distressed Debt has a relatively accute focus, delivering returns for investors by snapping up distressed senior and senior secured debt of 'good companies with bad balance sheets', where the businesses are backed by tangible assets like power stations or planes.
Looking solely at the fund's discount, NB Distressed Debt might not appear a stand out pick. It trades at a 6.3% discount to net asset value, which is not wide in absolute terms. In its favour, however, is the manager's active strategy of accumulating debt positions and working closely with companies to repair their balance sheets. Jeffries feels that with its discount of just about 6%, there is significant value embedded in the trust. Combined with decent visibility of its holdings this makes NB Distressed Debt a compelling buy. |
Petajen - yes, many investments are in default, some payment-in-kind (more stock, valued at market?).
Total return is the important thing, of course, but I wish they'd explained why no dividends to date.
Anyway, it's nice to see a move back towards par against NAV. |
Jonwig I see that asset value published at interim was 2 or 3% higher than the asset value announced at end if June. Guess there could be similar uplift at year end if there are assets that do not have a ready market value?Income received on investment seems very low so guess that any dividend would only be nominal |
That's right, ibarty, and the share price has only just cottoned-on.
I think NAV is largely M-to-M calculated, but actual realisations appear to be ahead of these.
Time we had some money back - the original model had regular dividends: we haven't even had irregular ones! |
Asset value now above 1.08 and guess we can look forward to further gains as restructuring situations mature |
NAV now $1.0457 so trading at a discount (used to be around par) despite some profitable exits and in run-off from next summer. |
NAV on 11/05 = $1.0043
NAV on 18/05 = $0.9898
Increase = (1.44)%
NAV on 18/05 = $0.9898
NAV on 25/05 = $0.9754
Increase = (1.45%) |
NAV on 04/05 = $1.0012
NAV on 11/05 = $1.0043
Increase = 0.31% |
NAV ON 27/04 = $0.9984
NAV on 04/05 = $1.0012
Increase = 0.28% |
NAV on 20/04 = $0.9927
NAv ON 27/04 = $0.9984
Increase = 1.00% |
NAV on 05/04 = $0.9912
NAV on 13/04 = $0.9915
Increase = 0.00%
NAV on 13/04 = $0.9915
NAV on 20/04 = $0.9927
Increase = 0.00%
FY results announced today.
Nothing of note. |
NAV on 30/03 = $0.9944
NAV on 05/04 = $0.9912
Increase = (0.32)% |
NAV on 23/03 = $0.9965
NAV on 30/03 = $0.9944
Increase = (0.21)% |
SKYSHIP - well, I was lucky, I suppose ... but NBDD aren't actually doing what they say they'll do - like pay most of income out in divis: we haven't had one yet. (Expenses seem to exceed interest income.)
Also, the NAV should be making more progress with the increased confidence in the US economy. (Hence my weekly record.)
FY results due in a couple of weeks - will probably wait until then before holding or exiting. |
Jonwig - You timed your entry well; but is it worth persevering here?
Perhaps cash-in and reinvest for 12%pa upside over at ACD & SIGG.
The upside comes not just from portfolio gains; but also from the closing of their NAV discounts as they wind-up. |
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