Announcements - Bond Adviser

The Neuberger Berman Global Corporate Income Trust (NB GCIT) is a listed income trust (LIT) designed to provide investors with access or exposure to the global high-yield bond market (ASX: NBI). This $2.7 trillion asset class is a major pillar of the global fixed income universe and highly diversified by geography, sector and credit quality. Specialist expertise is required to operate in this market and the global NB high yield investment team comprises highly-skilled debt specialists with significant experience managing high yield bonds. The strength, scale and expertise of NB's global network underpins the firm’s high yield platform which has been in existence for over 20 years. The investment objective of the trust is to provide stable income with a target distribution of 5.25% p.a. after fees, payable monthly. The trust aims to provide incremental capital appreciation throughout the cycle and more importantly, avoid capital downside. The GCIT is not leveraged and all foreign currency risk is hedged into AUD.

On 26 September 2018 the NB GCIT successfully raised $413 million in its initial public offering at an indicative Net Asset Value (NAV) of $2.00. On 14 May 2019, a non-renounceable Entitlement Offer was announced with an offer ratio of 1 new unit for every 1 existing unit held. A Shortfall Offer is also available which includes a 15% placement capacity under ASX Listing Rule 7.1. Assuming each Offer is taken up in full, an additional $475 million will be raised for NB GCIT, which should be invested within 3 days given the robust liquidity of the market.

All management and other costs associated with the LIT are 0.85% p.a. of invested capital. The Offers open on 5 June 2019 and fully closes by 28 June 2019 and the New Units are expected to be fully issued by 12 July 2019.

Please note that the attached Product Disclosure Statement (PDS) was lodged with ASIC on 14 May 2019. BondAdviser reserves the right to vary or withdraw our research opinion should material changes arise during the lodgement period.

Summary details of the transaction are listed in the table below:

Product Type

Listed Investment Trust

Asset Class

Fixed Income

Issue Size*

~$900,000,000

Sub-Asset Class

Credit

Net Asset Value

$2.00

Manager

Neuberger Berman Australia Pty

Fixed / Floating

Fixed

Responsible Entity

Equity Trustees Limited

Payment Frequency

Monthly

Custodian & Administrator

JP Morgan Chase Bank N.A.

Target Distribution

5.25% (net of fees)

Unit Registrar

Boardroom Pty Limited

First Distribution

5.25% (net of fees)

Offer Opens***

5 June 2019

Franking Credits Inclusive

Offer Closes***

28 June 2019

ASX Listed

Yes (ASX Code: NBI

Allotment Date***

12 July 2019

Convertible

Commences Trading On

12 July 2019

GICS Sector**

Investment Companies

First Payment Date

August 2019

* Issue size includes inital $413 million and assumes full take up of Entitlement and Shortfall Offers.

** We classify NBI within the GICS Sector "Investment Companies", but note that the ASX is likely to assign it a "Not Applicable" classification.

*** Dates are slightly variable between Entitlement and Shortfall Offers.

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Entitlement Offer: NB Global Corporate Income Trust