18 Jan 2012 07:00
Greenwich Loan Income Fund Limited ("GLIF" or the "Company")
Quarterly CLO Test Results
The Company today announces the test results as of 4 January 2012 pursuant to the indenture of T2 Income Fund CLO I Ltd (the "CLO"), of which the Company owns all of the residual economic interest. The report summarising the results of those tests can be found at the link below:
http://www.rns-pdf.londonstockexchange.com/rns/7070V_-2012-1-17.pdf
With respect to the various tests required under the CLO indenture, the CLO passed all of the collateral and coverage tests as of 4 January 2012, but failed one portfolio percentage limitation test. This relates to the minimum percentage requirement for senior secured loans, as the CLO received scheduled amortizations and prepayments of US$47.5 million during the quarter, and cash balances have the effect of reducing the percentage of invested funds for purposes of the portfolio percentage limitation test. The available cash balance is being reinvested which, to the extent invested in senior secured loans, will address the test requirement. It should be noted that the consequence of failing this percentage limitation test is that each new investment made by the CLO must "maintain or improve" the test result. The quarterly results indicate that the CLO met all of the covenant tests necessary for a full payment to be made to the Company and approximately US$3.3 million has been received from the trustee.
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 deteriorate or the loans held by the CLO fail to make expected payments or otherwise not perform, or for a variety of other reasons, and which if violated could result in additional principal paydowns of the CLO's notes and/or interest diversion.
Contacts:
Geoffrey Miller
Greenwich Loan Income Fund Limited
+353 1 4433 466
Patrick ConroyGreenwich Loan Income Fund Limited+1 203 983 5282
Philip Secrett
Nominated Adviser
Grant Thornton Corporate Finance
+44 (0) 20 7383 5100
James Maxwell
Singer Capital Markets Limited
+44 (0) 20 3205 7623
Ed Gascoigne Pees
Financial Dynamics
+44 (0) 20 7269 7132