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")

£407,239,000

3.246 per cent. Index Linked guaranteed secured bonds due 30 June 2040

(including £35,000,000 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)

Partial Bond Redemption

On 15 August 2023 the Issuer announced the prepayment of bonds in RNS 4098J.  Prepayment was made on 18 September 2023. The Company has been approached by the Investment Association on behalf of certain bondholders with a request for further information in relation to the prepayment. 

As set out in RNS 4098J, the Credit Provider directed the Issuer to redeem the CPCT Portion (9.826590 per cent) of the Outstanding Principal Amount of each bond at the CPCT Prepayment Amount together with accrued interest adjusted for indexation.  A total of £45,117,084.77. 

·     Calculation of the prepayment amount is governed by the Bond Trust Deed.

·    Mandatory Partial Redemption is set out in clause 5(d) of Schedule 4 of the Bond Trust Deed.   At any time following the termination of the Project Agreement in relation to CPCT (now known as CWPT) the Credit Provider can direct the Issuer to redeem bonds equal to the CPCT Prepayment Amount, together with accrued interest, adjusted for indexation.  The total payable is the Relevant Redemption Amount.

·   The CPCT Prepayment Amount is 9.826590 per cent of the Outstanding Principal amount which is £597.269 per £1,000 of bonds in issuance per Schedule 4 of the Bond Trust Deed.  Bonds in issuance amount to £372.239 million as the variation bonds have not been issued.  The index ratio applicable to the month in which redemption took place is 2.0506545 which is RPI for January 2023 of 360.3 (per the Office for National Statistics) as numerator and 175.7 as denominator per the Bond Trust Deed.  The prepayment amount (principal prepayment) therefore amounts to £44,800,945.92 (being: 9.826590% x (£597.269/£1,000.000) x £372,239,000 x 2.0506545).

·    Accrued interest is calculated as the bond rate of interest (3.246%) applied to the CPCT Prepayment Amount and multiplied by the Day Count Fraction of 0.217391304 (80 days / 184 days).  Interest therefore amounts to £316,138.85 (3.246% x £44,800,945.92 x 0.217391304).

·     No spens applies.

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.