Peterborough (Progress Health) plc Announcement (7573A)

TIDM50PS

RNS Number : 7573A

Peterborough (Progress Health) plc

09 June 2016

RNS ANNOUNCEMENT

PETERBOROUGH (PROGRESS HEALTH) PLC - RNS ANNOUNCEMENT

For immediate release

09 June 2016

PETERBOROUGH (PROGRESS HEALTH) PLC (the "Issuer")

GBP446,115,000, 5.58 per cent. Guaranteed Secured Bonds due 2042

(including up to GBP50,000,000 Variation Bonds) unconditionally and irrevocably guaranteed as to scheduled payments of principal and interest pursuant to a bond financial guarantee issued by FGIC UK Limited (the "Bonds")

(ISIN XS0308856276)

The Cavell Centre (TCC)

Cambridgeshire Fire and Rescue Service (CFRS) issued an Action Plan for TCC on 8 February 2016, which provides for Remedial Works to be completed by 30 August 2016. Remedial works are ongoing and are currently ahead of the programme agreed with Cambridgeshire and Peterborough NHS Foundation Trust (CPFT).

On 14 April 2016, the Issuer received notice from CPFT of its intention to make deductions to the service payment due to Progress Health in April 2016 on the basis that TCC is, for the purposes of the applicable contractual documents, Unavailable but Used. CPFT confirmed on 29 April 2016 that it would be making such deductions.

CPFT deducted GBP225,757.50 plus VAT (GBP270,909.00 including VAT) from the payment due to Progress Health in April 2016, of which GBP37,440.77 plus VAT (GBP44,928.92 including VAT) was deducted from the Service Payment due to Brookfield Services on 29 April 2016. The net balance of GBP188,316.73 was passed down to Brookfield Construction as a Reduction Amount in accordance with Clause 22A.7 of the Construction Contract, and was paid by the Contractor on 18 May 2016.

Further to the above, on 26 May 2016, CPFT confirmed that it would be making deductions from the May 16 service payment.

CPFT deducted GBP216,554.00 plus VAT (GBP259,864.80 including VAT) from the payment due to Progress Health in May 2016, of which GBP37,440.77 plus VAT (GBP44,928.92 including VAT) was deducted from the Service Payment due to Brookfield Services on 31 May 2016. The net balance of GBP179,113.23 will be passed down to Brookfield Construction as a Reduction Amount in accordance with Clause 22A.7 of the Construction Contract.

CPFT's assertion that TCC is Unavailable but Used is based on alleged issues in respect of the fire compartmentation which have been identified as a result of surveys undertaken at TCC on behalf of CPFT. The Issuer does not accept that TCC has been at any time or is Unavailable.

Financial Obligations

The Issuer fulfilled its Debt Service Obligations on 2 October 2015 and 2 April 2016, without the need to utilise cash standing to the credit of such available reserve bank accounts or make a drawdown under the Liquidity Facility Agreement. The Issuer expects to be in a position to meet its next Debt Service Obligations, due on 2 October 2016, without recourse to such available reserve bank accounts or the Liquidity Facility Agreement.

The Issuer is taking legal advice with respect to the matters mentioned in this announcement and reserves its position.

Enquiries

The Issuer

Peterborough (Progress Health) PLC

8 White Oak Square

Swanley

Kent

BR8 7AG

Attention: Matt Rollings

The Principal Paying Agent

Bank of America, N.A.

3rd Floor, 2 King Edward Street

London

EC1A 1HQ

Attention: John Salmon

The Bond Trustee

BofAML Trustees Ltd

3rd Floor, 2 King Edward Street

London

EC1A 1HQ

Attention: John Salmon

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

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June 09, 2016 07:06 ET (11:06 GMT)