51VZ Cov&rug 3.246%

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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December 15, 2022 05:09 ET (10:09 GMT)

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