REG - Coventry&Rugby Hos. - Adjudication Outcome

Assured GuarantyAnnouncement

10/06/2022 15:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220610:nRSJ5164Oa&default-theme=true

RNS Number : 5164O  Coventry & Rugby Hospital Co PLC  10 June 2022

ANNOUNCEMENT

THE COVENTRY AND RUGBY HOSPITAL COMPANY PLC - RNS ANNOUNCEMENT

 

THE COVENTRY AND RUGBY HOSPITAL COMPANY PLC (the "Issuer")

£407,239,000

3.246 per cent. Index Linked guaranteed secured bonds due 30 June 2040

(including £35,000,000 variation bonds)

(with authority to issue further bonds)

unconditionally and irrevocably guaranteed as to scheduled payments of
principal and interest pursuant to a financial guarantee policy

issued by MBIA ASSURANCE S.A. (succeeded by Assured Guaranty UK LIMITED)

 

 

Warning Notices and Service Failure Points

 

In reference to the Project Agreement between University Hospitals Coventry
and Warwickshire National Health Service Trust, Coventry Primary Care Trust
(succeeded by Coventry and Warwickshire Partnership Trust) and The Coventry
and Rugby Hospital Company Plc, dated 3 December 2002, as amended from time to
time and the Collateral Deed between The Coventry and Rugby Hospital Company
Plc, The Coventry and Rugby Hospital Company (Holdings) Limited, Mourant &
Co. Capital Trustees Limited (succeeded by Apex Corporate Trustees (UK) Ltd)
(As Security Trustee
(https://pfi.affinitext.com/viewer/book?id=8435&folder_id=7267)
 and Bond Trustee
(https://pfi.affinitext.com/viewer/book?id=8435&folder_id=7267) ) and MBIA
Assurance S.A. (succeeded by Assured Guaranty UK Limited), dated 3 December
2002. Unless otherwise defined herein, capitalised terms have the same meaning
as given to them in the Project Agreement and Collateral Deed.

On 23 December 2021 the Issuer, its Hard FM subcontractor Vinci Construction
UK Ltd and Coventry and Warwickshire Partnership Trust ("CWPT") (together the
"Standstill Parties") entered into a Standstill Agreement relating to alleged
failures. The Standstill Parties agreed that they will enter into discussions
regarding the issues with the intention of resolving these during the
Standstill Period. The Standstill Agreement also varied the terms of the
Dispute Resolution Procedure as set out in the Project Agreement in relation
to these issues.

On 31 January 2022, CWPT served a Notice of Adjudication to the Issuer in
relation to the Dispute regarding the alleged failures. CWPT payments equate
to approximately 8% of the total Unitary Payments.

The Adjudication procedure has now concluded, and the final decision was
received on 23 May 2022. The level of SFPs that CWPT was entitled to award
constitutes Project Co Events of Default under the Project Agreement. The
level of SFPs also give rise to Events of Default under the Collateral Deed.

Financial Obligations

CWPT has made deductions from its Unitary Charge payments in relation to these
alleged failures. However, the Issuer fulfilled its Scheduled Senior Debt
Service obligations on 31 December 2021, without the need to utilise cash
standing to the credit of available reserve bank accounts. The Issuer expects
to be in a position to meet its next Scheduled Senior Debt Service
obligations, due on 30 June 2022, as well as all future Scheduled Senior Debt
Service obligations, without recourse to such available reserve bank accounts.

 

Enquiries

 

The Issuer

The Coventry and Rugby Hospital Company Plc

8 White Oak Square

Swanley

Kent

BR8 7AG

 

Attention: Jacques Mostert, Project Co. Representative.

 

 

Important information

This announcement is not a prospectus, is distributed for information purposes
only and does not constitute or form part of any offer or invitation to issue,
acquire or dispose of any securities in any jurisdiction. Nothing in this
document is intended to amount to an invitation or inducement to engage in
investment activity. Nothing in this document amounts to the giving of advice.
If you are in any doubt as to the action you should take, you should consult a
professional adviser.

 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  MSCEAAKEFSXAEFA