REG - Coventry&Rugby Hos. - Whole site unavailability

Assured GuarantyAnnouncement

14/11/2022 18:00

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RNS Number : 3553G  Coventry & Rugby Hospital Co PLC  14 November 2022

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 Ltd)

(the "Bonds")

(ISIN: XSO159152189 Common Code: 015915218)

 

Whole site unavailability

The Issuer has received a notice of whole site unavailability relating to the
Acute facility following various leaks in the plastic hot water pipes which
have been repaired. A plan to replace and mitigate the effect of any further
defects in the   pipework is being developed with the Trust. A Supplemental
Agreement entered into on 25/06/2013, with the original building contractor,
sets out a protocol for managing the pipework and provides an indemnity for
losses, damages or reasonable expenses incurred as a consequence of defective
plastic piping. Whilst this Supplemental Agreement extends the liability of
the building contract until expiry of the Project Agreement, the Issuer is
potentially exposed to litigation risk, including  litigation costs, and
potential cashflow risk in relation to procuring remediation works in advance
of recovery against other parties.

The above gives rise to a Potential Event of Default under the Collateral
Deed.

Discussions are ongoing in respect to the mental health facility and the
Termination Notice issued by the Coventry and Warwickshire Partnership Trust
under the Funders Direct Agreement. 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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