Macquarie has wound up its NZDX-listed Fortress Notes, having recently sold a portfolio of senior secured loans in the US to which the notes are linked.
The notes, which were first issued in 2005 and subsequently restructured in 2008 following the global financial crisis, were sold to between 800 and 1,000 New Zealand investors.
Macquarie says the sale proceeds will be used to repay the debt restructuring put in place in April 2008 and the remaining cash balance of about 45 cents per note will be returned to noteholders, meaning investors will realise a capital loss of 55 cents in the dollar.
The NZ$28.7m ($23.1m) of notes were issued in May 2005 with an 11.5% coupon and were not due to mature until May next year. Their value was badly affected by the global financial crisis with net asset value falling to zero in October 2008 before gradually recovering to 46.1 cents on 30 June this year.
"The decision to sell the portfolio was taken by [Macquarie] after considering a range of issues, including factors such as the current uncertainty in global financial markets, the average price at which loans were trading as well as the expected legal maturity of the loans in the portfolio," said director Peter Lucas.
This analysis suggested that on a risk-adjusted basis and given the time value of money, the sale of the portfolio would be in the best interests of noteholders, especially having regard to the uncertain global economic outlook, he said.
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