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

[phone]

 

Patrick Conroy
T2 Income Fund Limited
[phone]

 

Philip Secrett

Nominated Adviser

Grant Thornton Corporate Finance

[phone]

 

Jos Trusted

Singer Capital Markets Limited 

[phone]

 

Ed Gascoigne Pees

Financial Dynamics

[phone]

 

 

END

 

 

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