Quarterly CLO Test Results

RNS Number : 6852Z

Greenwich Loan Income Fund Ltd

19 January 2011

 



Greenwich Loan Income Fund Limited ("GLIF" or the "Company")

Quarterly CLO Test Results

19 January 2011

The Company announces the test results as of 5 January 2011 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/6852Z_-2011-1-18.pdf

With respect to the various tests required under the CLO indenture, the CLO passed all of the collateral quality and coverage tests, but failed one portfolio percentage limitation test, which relates to the minimum percentage of senior secured loans rated by Moody's Investors Service, Inc. that must be outstanding.  This failure was primarily due to the amount of cash outstanding as of the test date.  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.   While the current month's results were controlling as to the January 2011 payment test, there was no interest diversion and a full payment of approximately US$2.3 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

[phone]

Patrick Conroy
Greenwich Loan Income Fund Limited
[phone]

Philip Secrett

Nominated Adviser

Grant Thornton Corporate Finance

[phone] 

James Maxwell

Singer Capital Markets Limited

[phone]

Ed Gascoigne Pees

Financial Dynamics

[phone]

 

END

 

 

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