16 Oct 2009 07:00
RNS Number : 8643A
T2 Income Fund Limited
16 October 2009
T2 Income Fund Limited ("T2I" or the "Company")
Quarterly CLO Test Results
The Company announces the test results as of 2 October 2009 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/8643A_1-2009-10-15.pdf
The quarterly results as of 2 October 2009 indicate that the CLO met all of the covenant tests necessary for a full interest payment to be made to the Company, and US$2.3 million has been received from the trustee.
The CLO did fail three portfolio percentage limitation tests, one of which relates to limitations on loans rated CCC+/Caa1 and lower by S&P and Moody's, respectively, one relates to the highest single obligor for non-senior secured loans and one relatesto the minimum percentage of senior secured loans required to be outstanding. It should be noted that the consequence of failing these percentage limitation tests is that each new investment made by the CLO must "maintain or improve" the test result.
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 further principal paydowns or interest diversion.
Contacts:
Geoffrey Miller
T2 Income Fund Limited
+353 1 4433 466
Patrick Conroy T2 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
This information is provided by RNS
The company news service from the London Stock Exchange
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