18 May 2009 07:00
T2 Income Fund Limited ("T2I" or the "Company")
Subsidiary's Quarterly Test Results
The Company announces the latest quarterly test results pursuant to the indenture of the Company's subsidiary, T2 Income Fund CLO I Ltd (the "CLO"). The report summarising the results of those tests can be found at the link below:
http://www.rns-pdf.londonstockexchange.com/rns/3824S_-2009-5-16.pdf
With respect to the various tests required under the CLO indenture, on 15 April 2009 approximately $380,000 (GBP253,000) was required to be used to partially pay down the AAA notes and $1.1 million (GBP 740,000) was required to be diverted and retained within the CLO. The next test date is 2 July 2009. While we continue to monitor the situation closely, we currently have only limited visibility with respect to which of the CLO tests may or may not be met on that date or other future dates, and whether any further principal paydowns or interest diversions may occur and, if so, the magnitude of those paydowns or diversions.
As described in previous press releases, the CLO indenture contains a variety of covenants, compliance with which could be made more difficult or impossible should credit markets continue to deteriorate.
Contacts:
Patrick Conroy T2 Income Fund Limited +1 203 983 5282
Philip Secrett
Nominated Adviser
Grant Thornton UK LLP
+44 207 383 5100