CLO test results

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 relates
to 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
 
END
 
 
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