Business
Trading update
Trading update.
About this update from Sancus Lending Group Limited
[{"type":"text","content":"\n T2 Income Fund Limited\n14 March 2006\n\nT2 Income Fund - year-end report\n\n\n\nMarch 14, 2006. T2 Income Fund Limited ('T2' or the 'Company') announced today\nupdated information regarding its first fiscal period of operations. T2 was\nadmitted to trading on AIM on August 5, 2005. For the period from inception\nthrough December 31, 2005, the Company earned net investment income of\napproximately £218,000 and unrealized gains on investments (related to currency\nfluctuations) of approximately £30,000. As of the end of the year, the net asset\nvalue per share was £0.97. This information is unaudited.\n\n\n\nDuring the last quarter of the year, the Company made its first two investments.\nOn December 15, 2005 the Company invested £1,156,430 in senior second lien debt\nof Corel Corporation, a Canadian-based software company, specializing in office\nproductivity software and graphic and imaging applications. The note bears\ninterest at LIBOR (the tenor selected by the borrower from time to time) plus\n800 basis points and matures August 16, 2010.\n\n\n\nOn December 30, 2005, the Company closed its second investment, consisting of\n£4.7 million senior secured first lien notes with warrants, in Peer 1 Network,\nInc., a Canadian-based provider of outsourced Internet infrastructure and\nservices. The notes mature on September 1, 2008, and may be extended at\nborrower's option for an additional two years; the notes bear interest at LIBOR\n(the tenor selected by the borrower from time to time) plus 650 basis points. T2\nalso received warrants to purchase 475,000 common shares (0.4%) of Peer 1\nNetwork Enterprises, Inc., the parent company, at a strike price of US$0.23 per\nshare.\n\n\n\nThe Company earned approximately £649,000 in interest income through December\n31, 2005, primarily from short-term deposits; during the quarter cash deposits\nwere bearing interest at rates of approximately 4.3% - 4.5%. The Company also\nearned closing fees of approximately £47,000 from the Peer 1 transaction\ndescribed above. Expenses from inception to December 31, 2005 were consistent\nwith budget, and totaled approximately £478,000, excluding formation expenses.\n\n\n\nWhile the Company remains pleased with the quality and number of investment\nopportunities available to it since its listing, it has, for a variety of\nreasons, chosen to not ...