Coventry & Rugby Hospital Co PLC Potential Event of Default (8526J)
15 Dezember 2022 - 11:09AM
UK Regulatory
TIDM51VZ
RNS Number : 8526J
Coventry & Rugby Hospital Co PLC
15 December 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")
GBP407,239,000
3.246 per cent. Index Linked guaranteed secured bonds due 30
June 2040
(including GBP35,000,000 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 and breach of Annual
Senior Debt Service Cover Ratio
The most recent Financial Model (the "Model") of the Issuer
forecasts that at 31 December 2022 there will be a shortfall in the
Buildings Lifecycle Reserve Account and that this will subsist for
more than two consecutive Scheduled Payment Dates. The Model also
forecasts that the Annual Senior Debt Service Cover Ratio for the
Forward and Historic Test Periods at 31 December 2022 will be less
than 1:1.05. If these events materialise at 31 December 2022 they
will be Events of Default under the Collateral Deed. Currently they
represent Potential Events of Default unless remedied by 31
December 2022.
The Issuer has an obligation under the Collateral Deed to
reserve 100% of the lifecycle spend for the next 12 months, and 25%
of each of the two 12-month periods after that in the Buildings
Lifecycle Reserve Account, in addition to the Unforecast Reserve
Amount. This is an amount that will ensure that there is no low
DCSR Periods in the Extra Look Forward Period. The Model is
forecasting that there will be insufficient cash to meet this
obligation and therefore the Buildings Lifecycle Reserve Account
will be underfunded as at 31 December 2022. This is due to
significantly higher forecast spend, including lifecycle works and
replacement pipework (disclosed on 14 November (RNS 3553G)), for
the period 1 April 2023 - 31 March 2024, leading to the higher
reserving requirement.
Reserving of this cash is treated as a cash outflow in
calculating the Annual Debt Service Cover Ratio ("ADSCR"),
therefore model is forecasting that the ADSCR will be below the
Event of Default threshold at 31 December 2022 for the Forward and
Historic Test Periods. 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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END
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