REG - Coventry&Rugby Hos. - Notice

Assured GuarantyAnnouncement

22/12/2020 14:40

RNS Number : 5666J
  
Coventry & Rugby Hospital Co PLC
  
22 December 2020
  
 

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 (Europe) Ltd)
 
 
Warning Notices and Service Failure Points
 
On 11 November 2020 University Hospital Coventry and Warwickshire Trust ("UHCW") issued two warning notices in respect of the accumulation of Service Failures Points ("SFPs") on two of the services provided by the Hard Services Provider, Vinci Facilities ("Vinci")", causing the level of SFPs within a 6 month rolling period to breach thresholds set out in the Project Agreement. This also constitutes a Trigger Event under the Collateral Deed.
In addition, on 24 November 2020 the Coventry and Warwickshire Partnership Trust ("CWPT") awarded SFPs that breach thresholds set out in the Project Agreement. On 30 November CWPT issued Warning Notices in relation to these threshold breaches. The level of points awarded by CWPT constitutes an Event of Default under the Collateral Deed. The award of these SFPs is disputed by the Hard Services Provider. Project Co intends to make a referral to the Dispute Resolution Procedure under the Project Agreement in relation to such.
The occurrence of Events of Default provides the Credit Provider with certain rights in respect of the Project. As at the date of this announcement, the Credit Provider has reserved its rights to exercise any of the rights available to them beyond placing the Project into distribution lock-up.
 
Financial Obligations
The Issuer fulfilled its Debt Service Obligations on 30 June 2020, 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 Debt Service Obligations, due on 31 December 2020, as well as all future 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: Jim Valentine, 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.
 

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