30 Jun 2009 07:00
T2 Income Fund Limited (the "Company")
Purchase of CLO Loan Notes
In the Chairman's Statement in the report and accounts for the year ended 31 December 2008 (announced on 9 June 2009) the Company noted that the loan notes issued by its CLO subsidiary (T2 Income Fund CLO I Ltd) were carried at fair value which created, for financial reporting purposes, an accumulated unrealised (and potentially unrealisable) gain of approximately £82.5 million as of 31 December 2008. The gains would only become realisable if the CLO loan notes could be acquired at a price below par. The Company noted that although it may be possible to acquire some small portion of the CLO loan notes at a discount to par value, it was extremely unlikely that a substantial portion of loan notes, let alone all of them, could be so acquired by the Company and hence the unrealised gains were almost certain to prove to be unattainable.
In relation to the above, the Company today announces that it has purchased approximately $1.1 million of face value Class B Second Priority Senior Notes due 2019 (previously issued by T2 Income Fund CLO I Ltd) at a purchase price of 43.5% of par.
While the Company has and continues to negotiate with various noteholders as it attempts to purchase certain of the outstanding notes of T2 Income Fund CLO I Ltd at discounts to their par values, there can be no assurances given that these negotiations will result in further purchase of those notes. The Company wishes to emphasise that the CLO loan notes acquired to date are a very small portion of the total CLO loan notes outstanding.
For further information, please contact:
Patrick Conroy, T2 Income Fund Limited+1 203 983 5282
Philip Secrett, Nominated Adviser, Grant Thornton UK LLP+44 (0)20 7383 5100