Trading Statement

RNS Number : 0284I

Greenwich Loan Income Fund Ltd

19 July 2012

 



Greenwich Loan Income Fund Limited

NAV update, dividend payment for the quarter ended 30 June 2012
 and quarterly CLO test results

Greenwich Loan Income Fund Limited ("GLIF" or "the Company") today announces its unaudited net asset value as at 30 June 2012, the dividend for the second quarter of 2012 and the quarterly CLO test results.

Net Asset Value

The Company's unaudited net asset value (NAV) per share as at 30 June 2012 was 47.9p.  This compares to the unaudited NAV of 47.8p per share as at 31 March 2012.

As reported in the Company's full year results on 26 March 2012, the NAV has been calculated using the fair value of the Company's consolidated assets less the par value of the consolidated debt.  

Dividend

The Directors of GLIF have today declared a dividend of 1.15p per share for the second quarter of 2012. The dividend will be payable to shareholders on the register on the record date of 27 July 2012.

The shares will have an ex-date of 25 July 2012 and the dividend will be paid on 10 August 2012.

Quarterly CLO Test Results

The Company also announces the test results as of 3 July 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/0284I_-2012-7-19.pdf

 

With respect to the various tests required under the CLO indenture, the CLO passed all of the collateral and coverage tests as of 3 July 2012, but failed one portfolio percentage limitation test, which relates to the minimum percentage requirement for senior secured loans, as the CLO received scheduled amortizations, prepayments and sales proceeds of approximately US$53.8 million during the quarter ended 30 June 2012, 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$3.8 million has been received from the trustee. We note that this is the highest quarterly payment received from the CLO since its inception.

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. 

Dated: 19 July 2012

Contacts:

Geoffrey Miller

Greenwich Loan Income Fund Limited

[phone]

Patrick Conroy

Greenwich Loan Income Fund Limited

[phone]

Hugh Field

Jeremy Ellis    

Investec Bank plc

[phone]

Ed Gascoigne Pees

FTI Consulting

[phone]

 

END

 

 

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