51VZ Cov&rug 3.246%

TIDM51VZ

RNS Number : 5164O

Coventry & Rugby Hospital Co PLC

10 June 2022

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 Assured Guaranty UK LIMITED)

Warning Notices and Service Failure Points

In reference to the Project Agreement between University Hospitals Coventry and Warwickshire National Health Service Trust, Coventry Primary Care Trust (succeeded by Coventry and Warwickshire Partnership Trust) and The Coventry and Rugby Hospital Company Plc, dated 3 December 2002, as amended from time to time and the Collateral Deed between The Coventry and Rugby Hospital Company Plc, The Coventry and Rugby Hospital Company (Holdings) Limited, Mourant & Co. Capital Trustees Limited (succeeded by Apex Corporate Trustees (UK) Ltd) (As Security Trustee and Bond Trustee ) and MBIA Assurance S.A. (succeeded by Assured Guaranty UK Limited), dated 3 December 2002. Unless otherwise defined herein, capitalised terms have the same meaning as given to them in the Project Agreement and Collateral Deed.

On 23 December 2021 the Issuer, its Hard FM subcontractor Vinci Construction UK Ltd and Coventry and Warwickshire Partnership Trust ("CWPT") (together the "Standstill Parties") entered into a Standstill Agreement relating to alleged failures. The Standstill Parties agreed that they will enter into discussions regarding the issues with the intention of resolving these during the Standstill Period. The Standstill Agreement also varied the terms of the Dispute Resolution Procedure as set out in the Project Agreement in relation to these issues.

On 31 January 2022, CWPT served a Notice of Adjudication to the Issuer in relation to the Dispute regarding the alleged failures. CWPT payments equate to approximately 8% of the total Unitary Payments.

The Adjudication procedure has now concluded, and the final decision was received on 23 May 2022. The level of SFPs that CWPT was entitled to award constitutes Project Co Events of Default under the Project Agreement. The level of SFPs also give rise to Events of Default under the Collateral Deed.

Financial Obligations

CWPT has made deductions from its Unitary Charge payments in relation to these alleged failures. However, the Issuer fulfilled its Scheduled Senior Debt Service obligations on 31 December 2021, 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 Scheduled Senior Debt Service obligations, due on 30 June 2022, as well as all future Scheduled Senior 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: 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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June 10, 2022 08:58 ET (12:58 GMT)

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