Central Notts Hospitals PLC Statement re Distribution Lock-up (1395X)

TIDM73VA

RNS Number : 1395X

Central Notts Hospitals PLC

17 December 2019

ANNOUNCEMENT

CENTRAL NOTTINGHAMSHIRE HOSPITALS PLC - RNS ANNOUNCEMENT

17 December 2019

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")

Distribution Lock-Up

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, with a view to finalising an agreed position on such matters in early 2020.

Due to the involvement of external parties engaged by the Trust, the finalisation of the agreement has taken longer than anticipated and gone beyond the grace period intended for service improvement and as discussed with Assured Guaranty. As a result, Assured Guaranty has enforced its rights, under the terms of the Collateral Deed, to place the Project into distribution lock-up until the agreement with the Trust and other parties is fully finalised.

The Issuer continues to work with the Trust, Skanska and Medirest with a view to improving service performance on the Project. The Issuer has gained assurances from the Trust that it does not wish to put the Project at risk, and discussions continue to move the process forward in a positive manner.

Financial Obligations

The Issuer fulfilled its Debt Service Obligations on 30 September 2019, 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 31 March 2020, 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: Craig Young, 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 rns@lseg.com or visit www.rns.com.

END

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