51VZ Cov&rug 3.246%

TIDM51VZ

RNS Number : 6890M

Coventry & Rugby Hospital Co PLC

22 January 2016

ANNOUNCEMENT

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 MBIA UK Insurance Limited)

Agreement of settlement

As previously announced, on 6 November 2015 the University Hospital Coventry and Warwickshire NHS Trust (the "Trust") withheld GBP18,079,162.13 + VAT, from the service payment of GBP21,342,568.18 +VAT, which was due for payment to the Issuer on 6 November 2015.

Please see the Issuer's announcement dated 11 November 2015 for details of the Trust's basis for the withholding. The Issuer gave notice to the Trust on 9 November 2015 that it disputed the Trust's basis for the withholding and referred the dispute to the Liaison Committee for resolution.

Following negotiations between the Issuer and the Trust, a full and final settlement has been reached. The terms and conditions of the settlement are confidential, however, in summary, the Trust has paid to the Issuer the outstanding amount of the service payment which was due to the Issuer 6 November 2015 and the Issuer has paid to the Trust a settlement amount. The Trust and the Issuer have also agreed a remediation plan in relation to fire compartmentation, which the Issuer will carry out with the assistance of its Construction Partner.

The payment of the settlement amount will not result in any Event of Default or Potential Event of Default (including with respect to financial cover ratios). In addition, the Trust has agreed not assert any right to make deductions in respect of the issues stated in the Issuer's previous announcement referred to above provided the remediation plan is executed in accordance with its terms.

Enquiries

The Issuer

The Coventry and Rugby Hospital Company Plc

8 White Oak Square

Swanley

Kent

BR8 7AG

Attention: Geoff Dix, 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 company news service from the London Stock Exchange

END

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(END) Dow Jones Newswires

January 22, 2016 02:59 ET (07:59 GMT)

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