Business
Progress since admission
Progress since admission.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n T2 Income Fund Limited\n20 December 2005\n\n\nT2 Income Fund - progress since admission\n\nDecember 20, 2005. T2 Income Fund Limited ('T2' or the 'Company'), a newly\nestablished closed-end Guernsey exempt investment company, announced today an\nupdate on progress since its admission to trading on AIM on August 5, 2005. T2\nhas completed its initial transaction, a £1.1 million investment in secured\nsecond-lien term notes issued by a Canadian-based technology firm in the\npackaged software publishing industry, bearing interest at 8% over LIBOR. The\ntransaction was finalized on December 15, 2005.\n\nT2 has been generally pleased with the quality and number of investment\nopportunities in profitable and growing technology companies available to it\nsince its initial public offering. It has however, for a variety of reasons,\nchosen not to pursue many of those potential transactions thus far, including\nthree out of the five prospective portfolio opportunities referred to in the AIM\nadmission document. The reasons include transaction-specific due-diligence\nissues, and the pricing and equity terms available which have made it not\npossible to achieve terms that T2 considers to be an appropriate risk/reward\nrelationship in its investments. The Board believes that a limiting factor in\nprogressing certain of those transactions has been the deliberative approach\ntowards debt financing on the part of some potential portfolio companies, which\nhas led to slower-than-expected progress in the negotiation and completion of\ncertain transactions.\n\nT2 has seen a range of technology companies (including companies in the\nenterprise software, IT services and Internet sectors) for which debt financing\nrepresents an attractive and efficient alternative to traditional equity capital\ninvestment, and the Company remains focused on opportunities to make investments\nconsistent with its mandate. Since the time of its admission to trading on AIM\nin August 2005, the Company has reviewed 19 transactions involving the debt\nsecurities of technology companies. The Company is currently working on 7\ntransactions, ranging in size from approximately £1.75 million to approximately\n£7.5 million, although the Company continues to note that there can be no\nguarantee that it will make these or similar investments. Of the five investment\nopportun...