Thursday 25th August 2011 2 Comments
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Holders of Macquarie New Zealand Fortress Notes are likely to receive about 45 cents per note when the note structure is wound up.
The notes provided investors with exposure to a leveraged portfolio of United States senior loans. They were first issued in 2005 and they were restructured in 2008 after the global financial crisis affected their value.
Macquarie Fortress Investments, the trustee of the notes, said today that the portfolio of senior secured loans to which the notes are exposed has been sold. The money raised will repay debt and the cash left over will be distributed to note holders as a return of capital. The notes will then be cancelled.
The trustee estimated that cash of around 45 cents per note will be distributed to note holders. The notes had a net asset value of 46 cents at April 29, 2011.
The 11.5 percent notes, which have a face value of $1, last traded at 27 cents on the NZDX. They were due to mature in May 2012.
Between 800 and 1000 New Zealanders have invested $30 million in Macquarie Fortress Notes.