NB Global Floating Rate Income Fund Limited

Transcription

1 NB Goba Foating Rate Income Fund Limited March 2011 NB Goba Foating Rate Income Fund Limited Orie Securities Limited Soe Sponsor, Soe Financia Adviser, Joint Goba Co-ordinator and Joint Bookrunner Dexion Capita pc Joint Goba Co-ordinator and Joint Bookrunner Prospectus March 2011

2 NOTHING IN THIS ELECTRONIC TRANSMISSION CONSTITUTES AN OFFER OF SECURITIES FOR SALE OR SOLICITATION IN ANY JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THIS ELECTRONIC TRANSMISSION (INCLUDING THE ATTACHMENT) IS PERSONAL TO THE RECIPIENT AND MUST NOT BE FORWARDED OR OTHERWISE DISTRIBUTED, IN WHOLE OR IN PART, TO ANY OTHER PERSON INCLUDING, WITHOUT LIMITATION, TO U.S. PERSONS OR IN OR INTO THE UNITED STATES. IMPORTANT: You must read the foowing discaimer before continuing. The foowing discaimer appies to the attached Prospectus and you therefore must read this discaimer page carefuy before accessing, reading or making any other use of the Prospectus. In accessing the Prospectus, you agree to be bound by the foowing terms and conditions. The Prospectus has been sent to you in eectronic form. You are reminded that documents transmitted via this medium may be atered or changed during the process of transmission and consequenty none of NB Goba Foating Rate Income Fund Limited (the Company ), Neuberger Berman Europe Limited (the Manager ), Orie Securities Limited ("Orie Securities"), Dexion Capita pc ( Dexion ), nor any person who contros the Company or the Manager or Orie Securities or Dexion, nor any of their respective directors, officers, empoyees or agents, nor any affiiate of any such persons, accepts any iabiity or responsibiity whatsoever in respect of any difference between the Prospectus distributed to you in eectronic format and the hard copy version avaiabe to you on request. Pease ensure your copy is compete. You are responsibe for protecting against viruses and other destructive items. Your use of this e-mai is at your own risk, and it is your responsibiity to take precautions to ensure that it is free from viruses and other items of a destructive nature. Orie Securities and Dexion are acting excusivey for the Company and no one ese in connection with the offer. They wi not regard any other person (whether or not a recipient of the attached Prospectus) as their respective cients in reation to the offer and wi not be responsibe to anyone other than the Company for providing the protections afforded to their respective cients nor for giving advice in reation to the offer or any transaction or arrangement referred to in the Prospectus. You have been sent the Prospectus by the Manager, Orie Securities or Dexion (as appicabe) on the basis that you have confirmed to such entity that you are a person into whose possession it may be awfuy deivered in accordance with the aws of the jurisdiction in which you are ocated and you may not, nor are you authorised to, deiver the Prospectus to any other person. You wi not transmit the Prospectus (or any copy of it or part thereof) or discose, whether oray or in writing, any of its contents to any other person except with the consent of the Manager, Orie Securities or Dexion (as appicabe). If you access the Prospectus, you must aso read the section entited "Seing Restrictions" and compy with the restrictions contained therein. By accepting this e-mai, you sha be deemed to have represented to us that (1) you (a) are outside the United States and not a U.S. person (as defined in Reguation S under the Securities Act), and are outside Canada, Austraia, Japan and any other jurisdiction where action woud be required to permit the distribution of the Prospectus or the offer or sae of the securities described therein to you; (b) ordinariy reside outside the United States, Canada, Austraia, Japan and each such jurisdiction and (c) are permitted under the aws of each appicabe jurisdiction to be offered the securities described in the Prospectus and (2) you consent to deivery of the Prospectus by eectronic transmission. EUROPEAN ECONOMIC AREA. PERSONS IN A MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM) WHICH HAS IMPLEMENTED DIRECTIVE 2003/71/EC (THE "PROSPECTUS DIRECTIVE") MUST BE A "QUALIFIED INVESTOR", WITHIN THE MEANING OF ARTICLE 2(1)(e) OF THE PROSPECTUS DIRECTIVE, TO ACCESS THE PROSPECTUS. THIS COMMUNICATION MUST NOT BE ACTED ON OR RELIED ON IN ANY MEMBER STATE OF THE EUROPEAN ECONOMIC AREA (OTHER THAN THE UNITED KINGDOM) BY PERSONS WHO ARE NOT QUALIFIED INVESTORS. UNITED KINGDOM. IN THE UNITED KINGDOM, THIS COMMUNICATION IS BEING DISTRIBUTED ONLY TO, AND IS DIRECTED ONLY AT, QUALIFIED INVESTORS (I) WHO HAVE PROFESSIONAL EXPERIENCE IN MATTERS RELATING TO INVESTMENTS WHO FALL WITHIN THE DEFINITION OF "INVESTMENT PROFESSIONAL" IN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND

3 MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005, AS AMENDED (THE "ORDER"), OR (II) WHO ARE HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS AND PARTNERSHIPS AND TRUSTEES OF HIGH VALUE TRUSTS AS DESCRIBED IN ARTICLE 49(2) OF THE ORDER, AND (III) OTHER PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS COMMUNICATION RELATES IS AVAILABLE ONLY TO AND WILL ONLY BE ENGAGED IN WITH SUCH PERSONS. THIS COMMUNICATION MUST NOT BE ACTED ON OR RELIED ON IN THE UNITED KINGDOM BY PERSONS WHO ARE NOT RELEVANT PERSONS. UNITED STATES. THE COMPANY HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE US INVESTMENT COMPANY ACT OF 1940, AS AMENDED (THE "INVESTMENT COMPANY ACT"), AND INVESTORS WILL NOT BE ENTITLED TO THE BENEFIT OF THAT ACT. THE SECURITIES HAVE NOT BEEN, AND WILL NOT BE, REGISTERED UNDER THE US SECURITIES ACT OF 1993, AS AMENDED (THE "SECURITIES ACT") OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES. AND MAY NOT BE OFFERED, SOLD, PLEDGED, EXERCISED OR OTHERWISE TRANSFERRED IN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) EXCEPT IN RELIANCE UPON AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE SECURITIES LAWS AND UNDER CIRCUMSTANCES THAT WOULD NOT REQUIRE THE COMPANY TO REGISTER UNDER THE INVESTMENT COMPANY ACT. ALL OTHER JURISDICTIONS. NO ACTION HAS BEEN TAKEN IN ANY JURISDICTION (OTHER THAN THE UK) THAT WOULD PERMIT THE DISTRIBUTION OF THE PROSPECTUS, OR THE OFFER OR SALE OF THE SECURITIES DESCRIBED THEREIN, TO THE PUBLIC. PERSONS IN ALL SUCH JURISDICTIONS ARE REQUIRED TO INFORM THEMSELVES ABOUT AND TO OBSERVE ANY LEGAL RESTRICTIONS ON THE DISTRIBUTION OF THE PROSPECTUS AND THE OFFERING AND SALE OF THE SECURITIES REFERRED TO THEREIN. THE PROSPECTUS MAY NOT BE USED FOR, OR IN CONNECTION WITH, AND DOES NOT CONSTITUTE, ANY OFFER TO SELL, OR AN INVITATION TO PURCHASE, ANY OF THE SECURITIES OFFERED THEREBY IN ANY JURISDICTION IN WHICH SUCH OFFER OR INVITATION WOULD BE UNLAWFUL. THIS COMMUNICATION IS NOT TO BE FORWARDED OR DISTRIBUTED TO ANY OTHER PERSON AND IS NOT TO BE REPRODUCED IN ANY MANNER WHATSOEVER. ANY FORWARDING, DISTRIBUTION OR REPRODUCTION OF THIS COMMUNICATION OR THE PROSPECTUS IN WHOLE OR IN PART IS UNAUTHORISED AND STRICTLY PROHIBITED. FAILURE TO COMPLY WITH THIS DIRECTIVE MAY RESULT IN A VIOLATION OF THE SECURITIES ACT OR THE APPLICABLE LAWS OF OTHER JURISDICTIONS. You shoud not repy by e-mai to this emai, and you may not purchase any securities by doing so. Any repy e-mai communications wi be ignored or rejected. The information contained herein does not constitute an offer to se or a soicitation of an offer to buy any securities. The distribution of any information herein, and the offer, sae and deivery of the securities described herein in certain jurisdictions may be restricted by aw. There sha be no sae of these securities in any state or jurisdiction in which an offer, soicitation or sae woud be unawfu prior to quaification under the securities aws of such state or jurisdiction. Each investor shoud read the Prospectus in fu before making an investment decision.

4 THIS DOCUMENT AND ANY ACCOMPANYING DOCUMENTS ARE IMPORTANT AND REQUIRE YOUR IMMEDIATE ATTENTION. If you are in any doubt as to the action you shoud take or the contents of this document, you are recommended to seek your own independent financia advice immediatey from your stockbroker, bank, soicitor, accountant, or other appropriate independent financia adviser, who is authorised under the Financia Services and Markets Act 2000 (the FSMA ) if you are in the United Kingdom, or from another appropriatey authorised independent financia adviser if you are in a territory outside the United Kingdom. A copy of this document, which comprises a prospectus reating to NB Goba Foating Rate Income Fund Limited (the Company ) in connection with the issue of Shares in the Company, prepared in accordance with the Prospectus Rues of the UK Listing Authority made pursuant to section 73A of the FSMA, has been fied with the Financia Services Authority in accordance with Rue 3.2 of the Prospectus Rues. The Shares are ony suitabe for investors (i) who understand the potentia risk of capita oss and that there may be imited iquidity in the underying investments of the Company; (ii) for whom an investment in the Shares is part of a diversified investment programme; and (iii) who fuy understand and are wiing to assume the risks invoved in such an investment programme. Appications wi be made for the Shares to be admitted to the Officia List of the UK Listing Authority with a premium isting and to be admitted to trading on the London Stock Exchange s main market for isted securities. It is expected that Admission wi become effective and that deaings in the Shares which are the subject of the Issue wi commence on 20 Apri It shoud be remembered that the price of the Shares and the income from them can go down as we as up. The Company and the Directors, whose names appear on page 39 of this document, accept responsibiity for the information contained in this document. To the best of the knowedge and beief of the Company and the Directors (who have taken a reasonabe care to ensure that such is the case), the information contained in this document is in accordance with the facts and does not omit anything ikey to affect the import of such information. The Investment Managers accept responsibiity for the information contained in this document attributed to them. To the best of the knowedge of the Investment Managers, who have taken a reasonabe care to ensure that such is the case, the information contained in this document attributed to them is in accordance with the facts and contains no omission ikey to affect its import. Capitaised terms contained in this document sha have the meanings set out in Part IX of this document. The attention of potentia investors is drawn to the Risk Factors set out on pages 10 to 24 of this document. The atest time and date for appications under the Offer is 1200 hours on 12 Apri Further detais of the Issue are set out in Part V of this prospectus. NB GLOBAL FLOATING RATE INCOME FUND LIMITED (a cosed-ended investment company imited by shares incorporated under the aws of Guernsey with registered number 53155) Pacing and Offer for Subscription for a target issue in excess of US$200,000,000 worth of Shares at an issue price of US$1.00 per U.S. Doar Share, 1.00 per Stering Share and C1.00 per Euro Share Investment Manager Neuberger Berman Europe Limited Soe Sponsor and Soe Financia Adviser Orie Securities Limited Sub-Investment Manager Neuberger Berman Fixed Income LLC Joint Goba Co-ordinators and Joint Bookrunners Orie Securities Limited and Dexion Capita pc This document does not constitute an offer to se, or the soicitation of an offer to acquire or subscribe for, Shares in any jurisdiction where such an offer or soicitation is unawfu or woud impose any unfufied registration, quaification, pubication or approva requirements on the Company or the Investment Managers. The offer and sae of Shares have not been and wi not be registered under the appicabe securities aws of the United States, Austraia, Canada or Japan. Subject to certain exceptions, the Shares may not be offered or sod within the United States, Austraia, Canada or Japan or to any nationa, resident or citizen of the United States, Austraia, Canada or Japan.

5 The Shares have not been and wi not be registered under the U.S. Securities Act of 1933, as amended (the U.S. Securities Act ) or with any securities reguatory authority of any state or other jurisdiction of the United States and the Shares may not be offered, sod, exercised, resod, transferred or deivered, directy or indirecty, within the United States or to, or for the account or benefit of, U.S. Persons (as defined in Reguation S under the U.S. Securities Act), except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the U.S. Securities Act and in compiance with any appicabe securities aws of any state or other jurisdiction in the United States. There wi be no pubic offer of the Shares in the United States. The Company has not been and wi not be registered under the U.S. Investment Company Act of 1940, as amended (the U.S. Investment Company Act ) and investors wi not be entited to the benefits of the U.S. Investment Company Act. Neither the U.S. Securities and Exchange Commission (the SEC ) nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this document. Any representation to the contrary is a crimina offence in the United States. The Shares are being offered and sod outside the United States to non-u.s. Persons (as defined in Reguation S under the U.S. Securities Act) in reiance on Reguation S under the U.S. Securities Act. In addition, prospective investors shoud note that, except with the express written consent of the Company given in respect of an investment in the Company, the Shares may not be acquired by (i) investors using assets of (A) an empoyee benefit pan as defined in Section 3(3) of ERISA that is subject to Tite I of the United States Empoyee Retirement Income Security Act of 1974, as amended ( ERISA ); (B) a pan as defined in Section 4975 of the United States Interna Revenue Code of 1986, as amended (the Code ), incuding an individua retirement account or other arrangement that is subject to Section 4975 of the Code; or (C) an entity which is deemed to hod the assets of any of the foregoing types of pans, accounts or arrangements that is subject to Tite I of ERISA or Section 4975 of the Code or (ii) a governmenta, church, non-u.s. or other empoyee benefit pan that is subject to any federa, state, oca or non-u.s. aw that is substantiay simiar to the provisions of Tite I of ERISA or Section 4975 of the Code, uness its purchase, hoding, and disposition of the Shares wi not constitute or resut in a non-exempt vioation of any such substantiay simiar aw. Investors may be required to bear the financia risks of their investment in the Shares for an indefinite period of time. For a description of additiona restrictions on offers, saes and transfers of the Shares, see Purchase and transfer restrictions beginning on page 77 of this document. Orie Securities Limited ( Orie ), which is authorised and reguated in the United Kingdom by the Financia Services Authority, is acting as Soe Sponsor, Soe Financia Adviser, Joint Goba Co-ordinator and Joint Bookrunner to the Company in connection with the matters described herein. Orie is acting for the Company in reation to the Pacing and no one ese and wi not be responsibe to anyone other than the Company for providing the protections afforded to its cients, nor for providing advice in reation to the Pacing, the contents of this document or any transaction or arrangement referred to herein. Dexion Capita pc ( Dexion ), which is authorised and reguated in the United Kingdom by the Financia Services Authority, is acting as Joint Bookrunner and Joint Goba Co-ordinator to the Company in connection with the matters described herein. Dexion is acting for the Company in reation to the Pacing and no one ese and wi not be responsibe to anyone other than the Company for providing the protections afforded to its cients, nor for providing advice in reation to the Pacing, the contents of this document or any transaction or arrangement referred to herein. Dexion Capita (Guernsey) Limited ( Dexion Guernsey ), which is icensed and reguated in the Baiiwick of Guernsey by the Guernsey Financia Services Commission, is acting as receiving agent for Dexion in connection with the Pacing. Dexion Guernsey is acting for Dexion in reation to the Pacing and no one ese and wi not be responsibe to anyone other than Dexion for providing the protections afforded to its cients, nor for providing advice in reation to the Pacing, the contents of this document or any transaction or arrangement referred to herein. Prospective investors shoud rey ony on the information in this document. No person has been authorised to give any information or make any representations other than those contained in this document and, if given or made, such information or representations must not be reied on as having been authorised by the Company, the Investment Managers, Orie, Dexion or Dexion Guernsey. Without prejudice to the Company s obigations under the Prospectus Rues, neither the deivery of this document nor any subscription or purchase of Shares made pursuant to this document sha, under any circumstances, create any impication that there has been no change in the affairs of the Company since, or that the information contained herein is correct at any time subsequent to, the date of this document. Apart from the responsibiities and iabiities, if any, which may be imposed on each of Orie, Dexion and Dexion Guernsey by FSMA or the reguatory regime estabished thereunder, none of Orie, Dexion or Dexion Guernsey accepts any responsibiity whatsoever for the contents of this document or for any other statement made or 2

6 purported to be made by it, or on its behaf, in connection with the Company, the Investment Managers, the Shares or the Issue. Each of Orie, Dexion and Dexion Guernsey accordingy discaims a and any iabiity whether arising in tort, contract or otherwise (save as referred to above), which it might otherwise have in respect of such document or any such statement. The contents of this document are not to be construed as ega, financia, business, investment or tax advice. Prospective investors shoud consut their own ega adviser, financia adviser or tax adviser for ega, financia or tax advice. Prospective investors must inform themseves as to: (a) the ega requirements within their own countries for the purchase, hoding, transfer, redemption or other disposa of the Shares; (b) any foreign exchange restrictions appicabe to the purchase, hoding, transfer, redemption or other disposa of the Shares which they might encounter; and (c) the income and other tax consequences which may appy in their own countries as a resut of the purchase, hoding, transfer, redemption or other disposa of the Shares. Prospective investors must rey on their own representatives, incuding their own ega advisers and accountants, as to ega, tax, investment, or any other reated matters concerning the Company and an investment therein. In connection with the Pacing, each of Orie and Dexion and any of their Affiiates acting as an investor for its or their own account(s), may subscribe for the Shares and, in that capacity, may retain, purchase, se, offer to se or otherwise dea for its or their own account(s) in such securities of the Company, any other securities of the Company or other reated investments in connection with the Pacing or otherwise. Accordingy, references in this document to the Shares being issued, offered, subscribed or otherwise deat with, shoud be read as incuding any issue or offer to, or subscription or deaing by, Orie, Dexion and any of their Affiiates acting as an investor for its or their own account(s). None of Orie, Dexion or any of their affiiates intends to discose the extent of any such investment or transactions otherwise than in accordance with any ega or reguatory obigation to do so. This document is dated 18 March

7 Contents Page Summary... 5 Risk Factors Important Notices Expected Timetabe Issue Statistics Directors, Investments Managers and Advisers Part I: Information on the Company Part II: Overview and Outook on the Foating Rate Loan Market Part III: Investment Managers, Process and Strategy Part IV: Directors, Management and Administration Part V: Issue Arrangements Part VI: Additiona Information Part VII: Terms and Conditions of the Pacing by Orie and Dexion Part VIII: Terms and Conditions of the Offer Part IX: Gossary of Seected Terms Appendix A Appication Form for the Offer

8 Summary This summary shoud be read as an introduction to this prospectus and any decision to invest in the Shares shoud be based on consideration of this prospectus as a whoe. Where a caim reating to the information contained in this prospectus is brought before a court, a caimant investor may, under the nationa egisation of an EEA state, have to bear the costs of transating this prospectus before the ega proceedings are initiated. Civi iabiity attaches to the Company and its Directors, who are responsibe for this summary, incuding any transation of this summary produced or commissioned by the Company, but ony if the summary is miseading, inaccurate or inconsistent when read together with the other parts of this prospectus. The Company The Company is a registered cosed-ended investment company incorporated in Guernsey. The Company is managed by Neuberger Berman Europe Limited, which has deegated certain of its responsibiities and functions to the sub-investment manager, Neuberger Berman Fixed Income LLC (together, the Investment Managers ). The Company s share capita wi be denominated in U.S. Doars, Stering and Euros and wi upon Admission consist of U.S. Doar Shares, Stering Shares and Euro Shares, subject to a minimum of US$30 miion (or the equivaent Stering or Euro amount) being raised for each cass of Shares pursuant to the Issue and compiance with the requirements of the Listing Rues. At any genera meeting of the Company, each U.S. Doar Share wi carry 1 vote, each Stering Share wi carry 1.6 votes and each Euro Share wi carry 1.4 votes. The Shares aso carry rights to receive a income and capita attributabe to the Shares which may be distributed by the Company. The rights of the Shares of each cass with respect to any such distribution and on a winding-up or other return of capita attributabe to the Shares (other than a redemption or repurchase of Shares by the Company) sha be in proportion to the reative Net Asset Vaues of each cass. Investment in the Company is ony suitabe for institutiona, professiona and high net worth investors, private cient fund managers and brokers and other investors who understand the risks invoved in investing in the Company, and/or who have received advice from their fund manager or broker regarding investment in the Company. Investment objective, poicy and strategy The Company s investment objective is to provide its sharehoders with reguar dividends, at eves that are sustainabe, whist growing the capita vaue of its investment portfoio over the ong term, utiising the investment skis of the Investment Managers. To pursue its investment objective, the Company wi invest mainy in foating rate senior secured oans issued in U.S. Doars, Stering and Euros by North American and European Union corporations, partnerships and other business issuers. These oans wi at the time of investment often be non-investment grade. The Company considers debt instruments to be non-investment grade if, at the time of investment, they are rated beow the four highest categories by at east two independent credit rating agencies or, if unrated, are deemed by the Investment Managers to be of comparabe quaity. The Company wi generay seek to focus on oans of issuers that the Investment Managers beieve have the abiity to generate cash fow through a fu business cyce, maintain adequate iquidity, possess an enterprise vaue in excess of senior debt and have access to both debt and equity capita. The Company may aso make investments in senior bonds on an opportunistic basis if the Investment Managers beieve that such investments are attractivey vaued, up to a maximum in aggregate of 20 per cent. of the Net Asset Vaue at the time of investment, provided that no more than 10 per cent. of Net Asset Vaue may be invested in unsecured senior bonds at the time of investment. 5 Summary

9 Diversification The Company expects that, once fuy invested, approximatey 75 investments across a minimum of 15 industries wi be represented in its portfoio of investments, with a focus on those industries regarded as defensive, such as utiities and heathcare. Defensive industries are those the Investment Managers beieve are ess affected by changes in economic conditions and ikey to demonstrate the strongest capita preservation. It is expected that, typicay, no industry wi represent more than 15 per cent. of Net Asset Vaue at the time of investment. No singe investment wi, at the time such investment is made, represent more than 5 per cent. of Net Asset Vaue. Gearing and derivatives The Company wi not empoy gearing or derivatives of any kind for investment purposes. The Company may, from time to time, use borrowings for share buy backs and short-term iquidity purposes. The Directors wi restrict borrowing to an amount not exceeding 20 per cent. of the NAV at the time of drawdown. Derivatives may be used for hedging purposes. Target Yied On the basis of current market conditions as at the date of this prospectus, the Board and Investment Managers wi target an annuaised yied per Share in the region of 5 per cent. (net of fees and expenses) on the Issue Price in respect of the first year of fu investment, pus some capita appreciation. Directors Each of the directors of the Company ( Directors ) acts in a non-executive capacity and is independent of the Investment Managers. The Directors are: Wiiam Frewen (Chairman) Richard Battey Sandra Patts Investment Managers The Investment Managers are responsibe for the discretionary management of the assets hed in the Company s portfoio and wi conduct the day-to-day management of the Company s assets (incuding uninvested cash). The Investment Managers are not required to and generay wi not submit individua investment decisions for approva by the Board. Investment Process The key components of the investment process are as foows: (i) idea generation; (ii) screening; (iii) due diigence; (iv) portfoio construction; and (v) ongoing monitoring. Any investment of the Company that is contempated by the Investment Managers wi have to pass each of these stages. Investment Strategy The Investment Managers intend to empoy a discipined research process that incudes fundamenta credit anaysis, combined with a thorough understanding of the industry and market position of each of the issuers in which the Company wi invest. Risk management is centra to decision making and is embedded throughout the investment strategy, being managed through portfoio diversification, in-depth credit research and ongoing sector reviews. 6 Summary

10 Investment Manager s fees The Investment Manager wi be entited to a management fee which sha be cacuated and accrue daiy at a rate equivaent to 0.75 per cent. of NAV per annum. The management fee wi be payabe quartery in arrear. The Issue The target size of the Issue is in excess of of US$200,000,000 with the potentia for increase subject to goba investor demand. The actua number of Shares to be issued pursuant to the Issue, and therefore the Gross Issue Proceeds, is not known as at the date of this prospectus but wi be notified by the Company via a RIS announcement and the Company s website prior to Admission. The Issue wi not proceed if the Net Issue Proceeds woud be ess than US$100,000,000 (or such esser amount as the Company, Orie and Dexion may determine and notify to investors via pubication of a suppementary prospectus). The target issue size shoud not be taken as an indication of the number of Shares to be issued. Appications wi be made to each of the UK Listing Authority and the London Stock Exchange, respectivey, for a of the Shares to be issued pursuant to the Issue to be admitted to isting on the Officia List and to trading on the Main Market. It is expected that Admission wi become effective and that deaings in Shares wi commence at 0800 hours on 20 Apri Discount Contro provisions Continuation Resoution The Directors are required to convene a genera meeting of the Company on or before the third and sixth anniversaries of Admission, (and annuay thereafter) in order to propose an ordinary resoution that the Company continue its business as a cosed-ended investment company (the Continuation Resoution ). If a Continuation Resoution is not passed, the Directors are required to put proposas for the reconstruction or reorganisation of the Company to the Sharehoders for their approva. Redemption Offer The Artices incorporate a discount management provision such that if, as at 31 December 2012, or as at 31 December in any subsequent caendar year, the Shares of a particuar cass have, on average over the ast three caendar months of the reevant caendar year (the Discount Cacuation Period ), traded at a discount in excess of 5 per cent. of the Net Asset Vaue per Share of that cass (cacuated by reference to the midde market quotation of the Shares of that cass on the Daiy Officia List of the London Stock Exchange on each trading day in the reevant Discount Cacuation Period and the most recenty pubished Net Asset Vaue per Share of the reevant cass as at the cose of trading on such trading day), the Directors wi, subject to any ega or reguatory requirements, impement a redemption offer (the Redemption Offer ) pursuant to which each hoder of Shares of the reevant cass sha be offered the opportunity to redeem up to 50 per cent. of their Shares of such cass. The costs and expenses of impementing the Redemption Offer (and a redemption fee) wi be borne by Sharehoders redeeming Shares pursuant to the Redemption Offer. Conversion The Company wi offer a monthy conversion faciity pursuant to which Sharehoders may eect to convert some or a of their Shares of a cass into Shares of any other cass. Sharehoders wishing to convert their Shares must give the Company 10 Business Days notice in advance of the first Business Day of each caendar month. 7 Summary

11 Hedging As Shares wi be denominated in U.S. Doars, Stering and Euros (subject to a minimum amount being raised for each cass and compiance with the Listing Rues) and investments may be denominated in U.S. Doars, Stering or Euros, hoders of any cass of Shares may be subject to foreign currency fuctuations between the currency in which such Shares are denominated and the currency of the investments made by the Company. Consequenty, the Investment Managers wi seek to engage in currency hedging between the U.S. Doar and any other currency in which the assets of the Company or a cass of Shares is denominated (subject to suitabe hedging contracts, such as currency swap agreements, futures contracts, options and forward currency exchange and other derivative contracts, being avaiabe in a timey manner and on terms acceptabe to the Investment Managers, in their soe and absoute discretion). Principa risk factors Prior to investing in the Shares, prospective investors shoud consider the foowing risks, which coud have a materia adverse effect on the Company s business, resuts of operations, financia condition or prospects, or coud impact the Net Asset Vaue per Share, the trading price or iquidity of the Shares, or the Company s abiity to achieve its investment objective: Risks reating to the Company & & & & & The Company is a newy formed company and investors have no basis on which to evauate the Company s abiity to achieve its investment objective The Target Yied in respect of the first year of fu investment is based on estimates and assumptions that are inherenty subject to significant business and economic uncertainties and contingencies; the actua rate of return may be materiay ower than the Target Yied The Company may be unabe to reaise vaue from its investments and investors coud ose a or part of their investment Capita gains from the Company s investments may require significant time to materiaise or may not materiaise at a Goba capita markets have been experiencing voatiity, disruption and instabiity. Materia changes affecting goba debt and equity capita markets may have a negative effect on the Company s business, financia condition and resuts of operations Risks reating to the Shares & The Shares may trade at a discount to NAV per Share and Sharehoders may be unabe to reaise their investments through the secondary market at NAV per Share & & The existence of a iquid market in the Shares cannot be guaranteed Individua Share casses may be exposed to currency risk & & Sharehoders in certain jurisdictions may not be eigibe to participate in any Redemption Offer and to receive the cash proceeds thereof In impementing a Redemption Offer, the Company wi be required to reaise assets when it woud not otherwise have done so, which may adversey affect the prices it can obtain for such assets and the amount distributed to Exiting Sharehoders 8 Summary

12 Risks reating to the investment strategy and investment portfoio & & & & & & & The success of the Company depends on the Investment Managers abiity to achieve the Company s investment objectives The vaue of senior oans may be adversey infuenced by a number of factors and eary prepayment or defaut by a borrower may affect the vaue of the Portfoio The Company may acquire different contractua rights depending on the way in which it invests in oans and it may be required to invest in oans using different contractua arrangements and structures In the event of defaut under a oan, the Company wi bear a risk of oss of principa and accrued interest Investments made by the Company in bank oans and sub-participations are subject to particuar risks The vaue of the Company s investments may be subject to jurisdiction-specific insovency regimes The Company s hedging arrangements may not be successfu Risks reating to the Company s coatera & The coatera and security arrangements under a oan in which the Company has invested may not have been propery created or perfected, or may be subject to other restrictions, and vauations of coatera are subject to assumptions and factors that may be incompete, inherenty uncertain or subject to change Risks reating to the Investment Managers & The Company is dependent on the expertise of the Investment Managers and their key personne & The due diigence process that the Investment Manager pans to undertake in evauating specific investment opportunities for the Company may not revea a facts that may be reevant in connection with investment opportunities & The Investment Managers wi source a of the Company s investments and affiiates of the Investment Managers may participate in some of those investments, which may resut in conficts of interest Risks reating to reguation and taxation & & & Greater reguation of the financia services industry which imposes additiona restrictions on the Company may materiay affect the Company s business and its abiity to carry out its investment objective Changes in the Company s tax status or tax treatment may adversey affect the Company and if the Company becomes subject to the UK offshore fund rues there may be adverse tax consequences for certain UK resident Sharehoders The AIFM Directive may impair the abiity of the Investment Managers to manage the investments of the Company, which may materiay adversey affect the Company s abiity to impement its investment strategy and achieve its investment objective 9 Summary

13 Risk Factors An investment in the Shares carries a number of risks incuding the risk that the entire investment may be ost. In addition to a other information set out in this prospectus, the foowing specific factors shoud be considered when deciding whether to make an investment in the Shares. The risks set out beow are those which are considered to be the materia risks reating to an investment in the Shares but are not the ony risks reating to the Shares or the Company. No assurance can be given that Sharehoders wi reaise profit on, or recover the vaue of, their investment in the Shares. It shoud be remembered that the price of Shares and the income from them can go down as we as up. The Shares are ony suitabe for investors who understand the risk of capita oss and that there may be imited iquidity in the underying investments of the Company and in the Shares, for whom an investment in the Shares woud be of a ong-term nature and constitute part of a diversified investment portfoio and who understand and are wiing to assume the risks invoved in investing in the Shares. Additiona risks and uncertainties of which the Company is presenty unaware or that the Company currenty beieves are immateria may aso adversey affect its business, financia condition, resuts of operations or the vaue of the Shares. Potentia investors in the Shares shoud review this prospectus carefuy and in its entirety and consut with their professiona advisers prior to making an appication to subscribe for Shares. Defined terms used in the risk factors beow have the meanings set out under the section headed Gossary of Seected Terms on pages 112 to 117 of this prospectus. Risks reating to the Company The Company is a newy formed company incorporated under the aws of Guernsey with no operating history and no revenues, and investors have no basis on which to evauate the Company s abiity to achieve its investment objective The Company is a newy formed company with no operating resuts, and it wi not commence operations unti obtaining funding through the Issue. Because the Company acks an operating history, investors have no basis on which to evauate the Company s abiity to achieve its investment objective and provide a satisfactory investment return. The Company s returns and operating cash fows wi depend on many factors, incuding the price and performance of its investments, the avaiabiity and iquidity of investment opportunities faing within the Company s investment objective and poicy, the eve and voatiity of interest rates, readiy accessibe shortterm borrowings, conditions in the financia markets, rea estate market and economy, the financia performance of borrowers, and the Company s abiity to successfuy operate its business and execute its investment strategy. There can be no assurance that the Company s investment strategy wi be successfu. The Company s Target Yied in respect of the first year of fu investment is based on estimates and assumptions that are inherenty subject to significant business and economic uncertainties and contingencies, and the actua rate of return may be materiay ower than the Target Yied The Company s Target Yied for the first year of fu investment set forth in this prospectus is a target ony and is based on estimates and assumptions about a variety of factors incuding, without imitation, asset mix, vaue, voatiity, hoding periods, performance of underying borrowers, investment iquidity, changes in current market conditions, interest rates, government reguations or other poicies, the wordwide economic environment, changes in aw and taxation, natura disasters, terrorism, socia unrest and civi disturbances or the occurrence of risks described esewhere in this prospectus, which are inherenty subject to significant business, economic and market uncertainties and contingencies, a of which are beyond the Company s contro and which may adversey affect the Company s abiity to achieve the Target Yied. Such Target 10 Risk Factors

14 Yied is aso based on the assumption that the Company wi be abe to impement its investment poicy and strategy successfuy as we as market conditions and the economic environment at the time of assessing the proposed Target Yied, and is therefore subject to change. There is no guarantee or assurance that the Target Yied or actua returns can be achieved at or near the eves set forth in this prospectus. Accordingy, the actua rate of return achieved may be materiay ower than the Target Yied, or may resut in a oss, which coud have a materia adverse effect on the NAV and the price of the Shares. Potentia investors shoud not pace any reiance on the Target Yied set forth in this prospectus and shoud make their own determination as to whether the Target Yied is reasonabe or achievabe in deciding whether to invest in the Company. The Company does not intend to pubish target returns reguary or to update or otherwise revise its Target Yied to refect subsequent events or circumstances. A faiure to achieve the Target Yied set forth in this prospectus may adversey affect the Company s business, financia condition and resuts of operations. Investment in the Company is ony suitabe for sophisticated investors The Company wi invest a of the Net Issue Proceeds in an activey managed portfoio of investments, mainy foating rate senior secured oans issued in U.S. Doars, Stering and Euros by North American and European Union corporations, partnerships and other business issuers. Such investments are ony suitabe for sophisticated investors who fuy understand and are wiing to assume the risks invoved in such investments, incuding the fact that they may be iiquid. Potentia investors shoud have regard to this when considering an investment in the Company. To optimise returns, Sharehoders may need to hod the Shares on a ong term basis and the Shares are not suitabe for short term investment. The Directors consider that an investment in the Company shoud be regarded as ong term in nature and is suitabe ony for sophisticated investors, investment professionas, high net worth bodies corporate, unincorporated associations and partnerships and trustees of high vaue trusts, in each case, who can bear the economic risk of a substantia or entire oss of their investment and who can accept that there may be imited iquidity in the Shares. The Company may be unabe to reaise vaue from its investments and investors coud ose a or part of their investment Investments that the Company makes may not appreciate in vaue and, in fact, may decine in vaue. A substantia component of the Investment Managers anaysis of the desirabiity of making a given investment reates to the estimated residua or recovery vaue of such investments in the event of the insovency of the issuer or the borrower. This residua or recovery vaue wi be driven primariy by the vaue of the underying assets constituting the coatera for such investment. The vaue of coatera can, however, be extremey difficut to predict and in certain market circumstances there coud be itte, if any, market for such assets. Moreover, depending upon the status of these assets at the time of an issuer s defaut, they may be substantiay worthess. The types of coatera owned by the issuers in which the Company invests wi vary widey, but are expected primariy to be receivabes and inventory as we as hard assets. Furthermore, the Investment Managers have no experience in managing these types of assets. During times of recession and economic contraction, there may be itte or no abiity to reaise vaue on any of these assets, or the vaue which can be reaised may be substantiay beow the assessed vaue of the coatera. A defaut that resuts in the Company hoding coatera may materiay adversey affect the performance of the Portfoio and the vaue of the Shares. There can be no assurance that the Company s investments wi generate gains or income or that any gains or income that may be generated wi be sufficient to offset any osses that may be sustained. As a resut, investing in the Company is specuative and invoves a high degree of risk. The Company s performance may be voatie and investors coud ose a or part of their investment. Past performance is no indication of future resuts and there can be no assurance that the Company wi achieve resuts comparabe to any past performance achieved by the Investment Managers or any empoyee of the Investment Managers described in this prospectus. 11 Risk Factors

15 Capita gains from the Company s investments may require significant time to materiaise or may not materiaise at a There may be a significant period between the date that the Company makes an investment and the date that any capita gain or oss on such investment is reaised. Capita return on the Company s investments, therefore, may not be reaised for a substantia time period, if at a. Goba capita markets have been experiencing voatiity, disruption and instabiity. Materia changes affecting goba debt and equity capita markets may have a negative effect on the Company s business, financia condition and resuts of operations Goba capita markets have been experiencing extreme voatiity and disruption for more than three years as evidenced by a ack of iquidity in the equity and debt capita markets, significant write-offs in the financia services sector, the repricing of credit risk in the credit market and the faiure of major financia institutions. Despite actions of government authorities, these events have contributed to worsening genera economic conditions that have materiay and adversey affected the broader financia and credit markets and reduced the avaiabiity of debt and equity capita. Continued or recurring market deterioration may materiay adversey affect the abiity of a borrower to service its debts or refinance its outstanding debt. Further, such financia market disruptions may have a negative effect on the vauations of the Company s investments, and on the potentia for iquidity events invoving its investments. In the future, non-performing assets in the Portfoio may cause the vaue of its investment portfoio to decrease if the Company is required to write down the vaues of its investments. Adverse economic conditions may aso decrease the vaue of coatera securing some of its oans. In the event of sustained market improvement, the Company may have access to ony a imited number of potentia investment opportunities, which aso woud resut in imited returns to sharehoders. Depending on market conditions, the Company may incur substantia reaised osses and may suffer additiona unreaised osses in future periods, which may adversey affect its business, financia condition and resuts of operations. Risks reating to the Shares The Shares may trade at a discount to NAV per Share and Sharehoders may be unabe to reaise their investments through the secondary market at NAV per Share The Shares may trade at a discount to Net Asset Vaue per Share for a variety of reasons, incuding market conditions or to the extent investors undervaue the management activities of the Investment Managers or discount their vauation methodoogy and judgments. Whie the Directors may seek to mitigate any discount to NAV per Share through discount management mechanisms they consider appropriate, there can be no guarantee that they wi do so or that such mechanisms wi be successfu and the Directors accept no responsibiity for any faiure of any such strategy to effect a reduction in any discount. The existence of a iquid market in the Shares cannot be guaranteed The Company wi appy for the Shares to be admitted to trading on the Main Market and expects the Shares to commence trading on this exchange on or about 20 Apri The market price of the Shares may rise or fa rapidy; investors shoud carefuy consider, among other things, the foowing factors before deaing in Shares: & & & & the prevaiing market price of the Shares; the Net Asset Vaue per Share, market price voatiity and iquidity of the Shares; any reated transaction costs; and the Company s creditworthiness. 12 Risk Factors

16 In addition, genera movement in oca and internationa stock markets, prevaiing and anticipated economic conditions and interest rates, investor sentiment and genera economic conditions may a affect the market price of the Shares. The Company has been estabished as a registered cosed-ended vehice. Accordingy, Sharehoders wi have no right to have their Shares redeemed or repurchased by the Company at any time. Whie the Directors retain the right to effect repurchases of Shares and to return capita in the manner described in this prospectus, other than in connection with the Redemption Offer they are under no obigation to use such powers at any time and Sharehoders shoud not pace any reiance on the wiingness of the Directors to do so. Sharehoders wishing to reaise their investment in the Company wi normay therefore be required to dispose of their Shares through the secondary market. Accordingy, Sharehoders abiity to reaise their investment at NAV per Share or at a is dependent on the existence of a iquid market for the Shares. The number of Shares to be issued pursuant to the Issue is not yet known, and, foowing the Issue, there may be a imited number of hoders of Shares. Limited numbers and/or hoders of Shares may mean that there is imited iquidity in such Shares which may affect (i) an investor s abiity to reaise some or a of his investment, and/or (ii) the price at which such investor can effect such reaisation, and/or (iii) the price at which such Shares trade in the secondary market. Individua Share casses may be exposed to currency risk The Shares in the Company wi be denominated in U.S. Doars, Stering and Euros, subject to a minimum amount being raised for each cass and compiance with the Listing Rues. Aso, investments made by the Company wi be denominated in U.S. Doars, Stering and Euros. The financia statements of the Company, however, wi be prepared in U.S. Doars and the operationa and accounting currency of the Company wi be the U.S. Doar. Therefore, the hoders of a specific cass of Shares may be subject to foreign currency fuctuations between the currency in which such Shares are denominated and the currency of the investments made by the Company. The Investment Managers wi normay seek to hedge currency exposure between the U.S. Doar (being the Company s operationa and accounting currency) and any other currency in which the Company s assets may be denominated. In addition, the Investment Managers wi normay seek to hedge the exposure of Shares denominated in currencies other than U.S. Doar against fuctuations between such currencies and the U.S. Doar. However, hedging arrangements wi be impemented on behaf of the Company ony when suitabe hedging contracts, such as currency swap agreements, futures contracts, options and forward currency exchange and other derivative contracts, are avaiabe in a timey manner and on terms acceptabe to the Investment Managers, in their soe and absoute discretion. To the extent that the Investment Managers are unabe to engage, or are unsuccessfu, in hedging currency exposure, Sharehoders wi be subject to fuctuations between the currency in which their Shares are denominated and the other currencies in which the assets and investments comprising the Portfoio are denominated. The Investment Managers reserve the right to terminate any hedging arrangement in their absoute discretion, incuding, without imitation, if they consider it to be in the interests of Sharehoders to do so or such arrangements may adversey affect the performance of the Company. In connection with any currency hedging transactions, the Company may be required to pedge some of its assets to the reevant counterparty to such transactions as coatera. Moreover, the agreements reated to the Company s currency hedging transactions typicay wi give the counterparty the right to terminate the transactions upon the occurrence of certain termination events. Such events may incude, among others, the faiure to pay amounts owed when due, the faiure to provide required reports or financia statements, a decine in the vaue of the Company s assets pedged as coatera, the faiure to maintain sufficient coatera coverage, the faiure to compy with the investment poicy and any investment restrictions, key changes in the Company s management or the Investment Managers personne, a significant reduction in the Company s assets and materia vioations of the terms of, or representations, warranties or covenants under, the transaction agreements, as we as other events determined by the counterparty. If a termination event were to occur, the counterparty woud be entited, in its soe discretion and without regard to the 13 Risk Factors