Astrea VI bonds above performance threshold; reserves balance exceeds half of Class A bonds

HOLDERS of Astrea VI Class A-1 private equity (PE) bonds will receive a bonus redemption premium of 0.5 per cent as the performance threshold was met as at Sep 18, 2022.

On Monday (Sep 18), Azalea Investment Management said US$51.5 million was reserved as scheduled out of the US$75.5 million reserved for Class A bonds. An additional US$24 million was reserved due to the performance threshold being met.

Astrea PE bonds are backed by cash flows from PE funds invested by Azalea – a wholly-owned subsidiary of Seviora and indirectly owned by Temasek.

Class A-1 bondholders would receive 3 per cent per annum in semi-annual interest. Those holding Class A-2 bonds will receive 3.25 per cent per annum, while Class B bondholders will receive 4.35 per cent.

Over the distribution period from Mar 19, 2023 to Sep 18, 2023, US$116 million of distributions were received from the PE funds, and US$8 million was invested through capital calls.

Net distributions of US$108 million were applied to the priority of payments, which requires certain payments to be made to the reserves accounts over a period of time.

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This cash flow and unrealised fair value movements resulted in an ending portfolio net asset value of about US$1.1 billion.

Astrea said its VI portfolio has appreciated cumulatively since Nov 30, 2020, by 30.7 per cent, to reach a total of US$1.9 billion. Its overall appreciation stood at US$447 million, comprising mainly fair value gains.