28 Apr 2010 07:00
Greenwich Loan Income Fund Limited
AGM statement
28 April 2010
Greenwich Loan Income Fund Limited (the "Company") is holding its Annual General Meeting at 11.00am today. At the meeting, Geoff Miller, Chairman, will give the following statement:
In July of last year I set out the actions to be taken by the Company to bring it within the mainstream of investment vehicles, including the acceleration of company announcements where possible. The fact that this year's AGM is being held in April rather than July is a testament to the significant changes that have been made withinthe operations of the Company since the last AGM statement.
The Company continues to see an improvement in the credit quality of assets held within the CLO, whilst maintaining the long term capital potential of the CLO. The cover of our interest diversion tests has improved since the year-end whilst the interest spread has been maintained. In addition, the average credit rating of the CLO portfolio is better than it has ever been. All of the loans held have continued to pay their cash interest.
In part these trends have been maintained because of the continuing acceleration of the prepayments and amortisations received by the Company. In the first half of 2009 $22.1m was received by way of prepayments and amortisations, up from $10.3m in the first half of 2008. In the first quarter of 2010 $23.1m was received. This high level of cash being repaid at par within the CLO allows monies to be recycled at attractive levels. There remain significant opportunities for these monies to be reinvested in the secondary markets and selectively in new issues.
At the end of the first quarter of the 2010 the CLO had assets valued for test purposes of $293.7m and a face value of $296.5m, which includes $15.5m of cash held within the CLO. Outside of the CLO, the Company held portfolio investments (excluding T2 CLO notes) as at 31 March with a market value of $5.1m and a face value of $11.9m, and $13.7m held in cash.
We will be publishing today on our website www.glifund.com data that underlies all of the trends mentioned in this statement. These data series and others will be updated monthly in future on the website as part of our ongoing commitment to increase transparency and communication.
Contacts:
Geoffrey Miller
Greenwich Loan Income Fund Limited
+353 1 4433 466
Patrick Conroy Greenwich Loan Income Fund Limited +1 203 983 5282
Philip Secrett
Nominated Adviser
Grant Thornton Corporate Finance
+44 (0) 20 7383 5100
Jos Trusted
Singer Capital Markets Limited
+44 (0) 20 3205 7622
Ed Gascoigne Pees
Financial Dynamics
+44 (0) 20 7269 7132