Estimated Net Asset Value PNZFB
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PINs Securities NZ Limited (PNZFB) | 10:52 am, Wednesday 20 August 2008
PINs Securities NZ Limited
PNZFB PINs Series 2006-1
CONTINUOUS DISCLOSURE ANNOUNCEMENT
Estimated Net Asset Value PNZFB
PINs Securities NZ Limited, the Issuer of PINs Series 2006-1, advises that
the estimated Net Asset Value (NAV) of the Portfolio Note backing PINs Series
2006-1 (PNZFB) was $67.53 per $100 par value as at 30 June 2008. The
estimated value of the Capital Component was $67.53 and estimated value of
the Equity Amount was nil.
The investment manager expects that a formal Disinvestment Event will now
occur (refer S5.4.4 of the Investment Statement and Prospectus (ISP)).
Following a Disinvestment Event no further interest will be paid on the
Portfolio Note and therefore on PINs during their remaining term. Repayment
of principal under PINs by the Issuer will continue to be supported by the
Barclays Bank commitment to repay to the Issuer the principal amount of the
Portfolio Note i.e $100 per note at the end of its term, 31 January 2014.
The issuer continues to explore options which may include a proposal for the
early redemption of the Series 2006-1 notes prior to scheduled maturity for
an amount equal to the net proceeds of realisation of the underlying
Portfolio Note. If that proposal was to be executed, the amount is likely to
be less than the current reported net asset value due to remaining early
termination costs.
Note: The estimated NAV of the Portfolio Note is calculated by the
Investment Manager on behalf of PINs Securities NZ Limited using estimates
provided by underlying investment managers and where weekly estimates could
not be obtained will include assumptions made by the Investment Manager on
the performance of some underlying funds. Actual performance of those funds
could differ from that contemplated by the estimated NAV. The estimated NAV
is calculated in accordance with the determinations in the term sheet agreed
between the Issuer and Barclays Capital. Please note that Barclays Capital
does not otherwise have any involvement in the calculation of the estimated
NAV. The estimated NAV has neither been verified by the Portfolio Note's
administrator nor audited.
There are two components to the estimated Net Asset Value (please refer to
section 5.5, "Portfolio Note Value" in the ISP dated 17 October 2006).
the Value of the Capital Component ($62.61 on Issue Date); plus
the Equity Amount ($37.39 on Issue Date).
The purpose of the Capital Component is to protect principal at maturity, the
value of which will fluctuate as yields move. The role of the Equity Amount,
which consists of the Credit Investment Portfolio less Investment Leverage
and Fees, is to generate sufficient returns to pay the quarterly coupons and
to create the potential for bonus interest at maturity.
Investors should consult their financial adviser before deciding to acquire
or dispose of interests in PINs Series 2006-1. Investors should also refer to
the Investment Statement and Prospectus for PINs Series 2006-1 for the
details of the relationship between PINs and the Portfolio Note.
