Central Notts Hospitals PLC Statement re Event of Default (2725R)

TIDM73VA

RNS Number : 2725R

Central Notts Hospitals PLC

26 June 2020

ANNOUNCEMENT

CENTRAL NOTTINGHAMSHIRE HOSPITALS PLC - RNS ANNOUNCEMENT

26 June 2020

CENTRAL NOTTINGHAMSHIRE HOSPITALS PLC (the "Issuer")

GBP351,900,000

1.8768 per cent. Index Linked guaranteed secured bonds due 30 September 2042

(including up to GBP32,000,000 variation bonds)

unconditionally and irrevocably guaranteed as to scheduled payments of principal and interest pursuant to a financial guarantee issued by

Financial Security Assurance (U.K.) Limited (succeeded by Assured

Guaranty (Europe) plc) ("Assured Guaranty")

Events of Default under Collateral Deed dated 4 November 2005

As previously announced on 16 December 2019, following the completion of an external review of the Project, carried out on behalf of Sherwood Forest Hospitals NHS Foundation Trust (the "Trust"), the Issuer, the Trust, Skanska Rashleigh Weatherfoil Limited ("Skanska") in their capacity as Hard Services Provider, and Compass Contract Services (U.K.) Limited ("Medirest") in their capacity as Soft Services Provider are in the process of discussing various operational and performance matters at the Project.

This has led to a level of self-reported service failure points ("SFPs") that exceed the Events of Default thresholds under the terms of the Collateral Deed dated 4 November 2005.

The occurrence of Events of Default provides the Credit Provider with certain rights in respect of the Project. As at the date of this announcement, the Credit Provider has not exercised any of the rights available to them beyond placing the Project into distribution lock-up until an agreement with the Trust and other parties is fully finalised (also as previously announced on 16 December 2019).

It is intended that the agreement will waive historic SFPs. It is therefore expected that the agreement will remedy the Events of Default under the terms of the Collateral Deed.

The Issuer continues to work with the Trust, Skanska and Medirest with a view to improving service performance on the Project; discussions continue to move the process forward.

Financial Obligations

The Issuer fulfilled its Debt Service Obligations on 31 March 2020, without the need to utilise cash standing to the credit of such available reserve bank accounts. The Issuer expects to be in a position to meet its next Debt Service Obligations, due on 30 September 2020, as well as all future Debt Service Obligations, without recourse to such available reserve bank accounts.

Enquiries

The Issuer

Central Nottinghamshire Hospitals Plc

8 White Oak Square

London Road

Swanley

Kent

BR8 7AG

Attention: Debbie Galvin, 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 news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [e-mail] or visit www.rns.com.

END

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June 26, 2020 10:47 ET (14:47 GMT)