REG - Coventry&Rugby Hos. - Shortfall in Lifecycle Reserve Account

Assured GuarantyAnnouncement

13/01/2023 18:15

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RNS Number : 7344M  Coventry & Rugby Hospital Co PLC  13 January 2023

ANNOUNCEMENT

THIS NOTICE IS IMPORTANT AND REQUIRES THE IMMEDIATE ATTENTION OF
BONDHOLDERS. IF BONDHOLDERS ARE IN ANY DOUBT AS TO THE ACTION THEY SHOULD
TAKE, THEY SHOULD IMMEDIATELY CONSULT THEIR OWN INDEPENDENT PROFESSIONAL
ADVISERS.

THIS NOTICE CONTAINS IMPORTANT INFORMATION THAT IS OF INTEREST TO THE
REGISTERED AND BENEFICIAL OWNERS OF THE BONDS. IF APPLICABLE, ALL
DEPOSITORIES, CUSTODIANS AND OTHER INTERMEDIARIES RECEIVING THIS NOTICE ARE
REQUIRED TO EXPEDITE TRANSMISSION HEREOF TO BENEFICIAL OWNERS OF THE BONDS IN
A TIMELY MANNER. IF BONDHOLDERS OR BENEFICIAL OWNERS OF THE BONDS ARE IN ANY
DOUBT AS TO THE MATTERS REFERRED TO IN THIS NOTICE, THEY SHOULD CONSULT THEIR
STOCKBROKER, LAWYER, ACCOUNTANT OR OTHER PROFESSIONAL ADVISER WITHOUT DELAY.

If you have recently sold or otherwise transferred your entire holding(s) of
Bonds referred to below, you should immediately forward this Notice to the
purchaser or transferee or to the stockbroker, bank or other agent through
whom the sale or transfer was effected for transmission to the purchaser or
transferee.

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)

(the "Bonds")

(ISIN: XSO159152189 Common Code: 015915218)

 

Shortfall in the Lifecycle Reserve Account

 

Further to the RNS announcement made by the Issuer on 15 December 2022 (RNS
8526J), the Issuer confirms that there was a shortfall in the Buildings
Lifecycle Reserve Account at 31 December 2022.

This currently constitutes a Trigger Event under the Collateral Deed, and a
Potential Event of Default unless remedied by the next Scheduled Payment Date
(30 June 2023). If not remedied, this will result in an Event of Default under
the Collateral Deed. The most recent Financial Model forecasts that this
shortfall will subsist for more than two consecutive Scheduled Payment Dates.

Further, the Issuer confirms that the Annual Debt Service Cover Ratio as at 31
December 2022 was 1.057. This constitutes a Trigger Event under the Collateral
Deed, but is above the level for and therefore does not constitute an Event of
Default.

Further updates will be provided when available.

 

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.

 

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