Hastings Funds Management Limited as Responsible Entity for the Hastings High Yield Fund (HHY) announced that HHY had divested its remaining interest in Manildra Group at close to par. HHY received consideration for the Manildra Group Reset Secured Notes Tranche 2 (RSN2) comprising $3.99 million principal plus accrued interest. This represents 99.70 cents for every dollar invested and equates to an internal rate of return (IRR) of 12.69 percent for HHY’s investment in the RSN2 series notes.
HHY Chief Operating Officer, Ross Pritchard said “The divestment of the Fund’s interest in Manildra Group is consistent with our strategy to divest non-core assets at or very near our holding value and we are pleased with the price realised for this asset.” The sale of the Manildra Group interest was foreshadowed in the update to the market released on 23 March 2012 and the proceeds will be used to support HHY’s current capital management initiatives. FY2012 distribution guidance remains unchanged at 15 cents per security.