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

CLO Test Results

17 November 2009

The Company announces the test results as of 2 November 2009 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/5980C_-2009-11-16.pdf

With respect to the various tests required under the CLO indenture, the CLO failed the Class E Principal Coverage Ratio and the Interest Diversion Test. The principal reason for these failures was due to the recent ratings downgrade of an investment which resulted in a significantly lower carrying value for purposes of calculating the CLO collateral coverage and interest diversion test. 

The CLO also failed four portfolio percentage limitation tests, two of which relate 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.

While the current month's test results are not controlling as to the 4 January, 2010 payment test, it may be worth noting that had this been a payment test, there would have been a principal paydown of the Class A Notes and interest diversion, but a partial payment would have been paid to the Company.

As described in previous press releases, the CLO indenture contains a variety of covenants, compliance with which, as well as curing existing defaults, 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 and/or interest diversion.

Contacts:

Geoffrey Miller

Greenwich Loan Income Fund Limited

+353 1 4433 466

Patrick Conroy
Greenwich Loan 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