PSource Structured Debt Limited Net Asset Value(s) (3244P)

TIDMPSD

RNS Number : 3244P

PSource Structured Debt Limited

23 October 2012

23/10/2012

PSource Structured Debt Limited

NAV for August 2012

The NAV per share for PSource Structured Debt Limited (PSD) as at 31 August 2012 is $0.6852 (43.19p), representing a total return of -2.49% for August 2012 as compared to the restated 30 June 2012 NAV in the annual accounts. At month end there were 59,564,681 shares in issue and the total NAV was $40,815,953. PSD is in a managed wind down.

As at 31 August 2012, the Company had a cash balance of $197,225.

Greater detail on the Company's post balance sheet events are set out in the Company's recently released audited statements which are available on the Company website.

As at 30 June 2012, the Company's position in Parabel was revalued from $8.70/share to $4.24/share. Fuller disclosure of the valuation methodology is given in the annual accounts.

As at 31 August 2012, the portfolio included investments in 19 companies, 9 of which were material. The maximum position in any company was 71.35% of the portfolio (being the holding in Parabel, held through a holding company PetroTech Holdings, Inc).

On 4 October 2012, at the request of the buyer, PSD renegotiated the agreed sale of its warrant holding in Biodelivery Sciences Intl. Whereas the entire holding was originally agreed to be sold for $709,245, under the revised agreement, the Manager agreed to sell a portion of the holding for $450,638, at the same price per unit as anticipated in the Post Balance Sheet Events of the Company's annual accounts. The remaining position, being valued at $241,290 as at 31 August 2012, is expected to be sold in the market, liquidity permitting. Based upon 22 October 2012 closing share price, the remaining warrants have an intrinsic value of $39,742.

An analysis of the portfolio by geography and industry as at 31 August 2012 is set out below:

 
  US State                              Debt/             Warrant/              No. 
                                                                                 of 
 or Country         Total               Loan               Equity            companies 
                       $                 note                 $ 
                                          $ 
------------  -----------------  ------------------  ------------------  ----------------- 
 AZ                      92,494           91,294                1,200                    1 
 Canada             3,646,631        3,646,631                        -                  1 
 CO                    251,279          251,250                      29                  1 
 FL               33,395,077       11,286,177          22,108,900                        3 
 IL                 1,973,264        1,973,264                        -                  1 
 NC                    241,290                    -         241,290                      1 
 TX                    592,350          592,350                       -                  1 
                  40,192,385       17,840,965          22,351,420                        9 
              =================  ==================  ==================  ================= 
 
 
                                              Debt/                 Warrant/                No. 
                                                                                             of 
  Industry            Total $               Loan note                Equity              companies 
                                                $                       $ 
------------  ----------------------  --------------------  -----------------------  ----------------- 
 Biotech                 4,958,798             4,087,667                871,132                      3 
 Computers                  251,279               251,250                        29                  1 
 Consulting              1,973,264             1,973,264                          -                  1 
 Industrial                 592,350               592,350                         -                  1 
 Renewable 
  Energy               28,677,569              7,198,510           21,479,059                        1 
 Security                3,646,631             3,646,631                          -                  1 
 Technology                   92,494                91,294                  1,200                    1 
                       40,192,385            17,840,965            22,351,420                        9 
              ======================  ====================  =======================  ================= 
 

Note: single company investments with a current valuation below $500 are not considered in the company investment count.

A further analysis of the Company's portfolio and balance sheet as at 31 August 2012 is set out below:

 
 Balance sheet Analysis 
-----------------------------------  ------------  ------------  ----------- 
 Loans                                                            % of Gross 
 Gross Debt                           $12,747,870                     31.72% 
 Less Impairment                      -$2,105,414                     -5.24% 
                                     ------------ 
 Net Debt (4)                         $10,642,455                     26.48% 
 PetroTech Preferred (3)               $7,198,510                     17.91% 
 
 Total Loans                                        $17,840,965       44.39% 
                                                   ------------ 
 
 Equity 
 Penny warrants (1)                            $0                      0.00% 
 Standard - In the money 
  (2)                                    $241,290                      0.60% 
 Standard - Out the money 
  (2)                                          $0                      0.00% 
                                     ------------ 
 Total Warrants                          $241,290                      0.60% 
 PetroTech Common (3)                 $21,479,059                     53.44% 
 Other Equities                          $631,070                      1.57% 
 Total Equity                                       $22,351,420       55.61% 
                                                   ------------ 
 Gross Portfolio                                    $40,192,385      100.00% 
 
 Cash                                                  $197,225        0.49% 
 Other Debtors/Liabilities/Accrued 
  Expenses                                             $426,344        1.06% 
 
 NAV                                                $40,815,953      101.55% 
===================================  ============  ============  =========== 
 

Monthly total return performance since inception is set out below(5) :

 
            Jan      Feb      Mar      Apr      May       Jun      Jul      Aug      Sep      Oct      Nov       Dec       YTD 
------  -------  -------  -------  -------  -------  --------  -------  -------  -------  -------  -------  --------  -------- 
  2012    2.27%   -0.53%   -1.06%   -0.39%   -0.38%   -41.74%    0.25%   -5.66%                                        -44.97% 
  2011   -0.97%   -0.95%   -0.94%   -1.73%   -0.29%    -3.08%   -0.83%   -0.96%   -0.55%   -0.39%   -1.22%   -21.79%   -30.64% 
  2010    5.85%   -0.11%    1.77%   -2.02%   -2.57%    -2.17%   -1.16%   -4.29%    1.08%    0.72%   -0.22%    -1.30%    -4.68% 
  2009    4.99%   -5.25%    2.95%    1.16%    3.76%     1.66%    1.37%   -0.13%   -0.50%    1.47%    4.20%     4.70%    21.86% 
  2008    0.55%    1.87%    2.05%    1.49%    1.73%     0.72%    1.41%    2.43%    0.03%   -2.14%   -4.78%     0.37%     5.63% 
  2007                                                                   -0.38%    1.19%    2.49%    1.95%     1.64%     7.06% 
 

Notes:

1. Penny warrants are warrants with a strike price of approximately 1 cent per share. These are held at a 7% discount to realisable value.

2. Standard warrants are held at a 30% discount to a Black-Scholes valuation. Where the 260-day volatility provided by Bloomberg exceeds 100%, 100% is used as the input to the Black-Scholes model.

   3.     The Company's holding in Parabel is based on an effective share price of $4.24. 

4. Debt is valued monthly with advice from the Company's independent valuation agent, Clayton IPS, and is held at par less appropriate impairment provisions.

   5.     Monthly returns based on Sterling returns until December 2008 and Dollar returns thereafter. 

Further information is available on the Company's website: www.psourcestructureddebt.com.

Contact:

Soondra Appavoo

PSource Capital Limited

020 3327 5251

This information is provided by RNS

The company news service from the London Stock Exchange

END

NAVDMMZGGFMGZZM