Carillion GBP500 Million Durham Schools Pact
August 18 2009 - 2:37AM
Dow Jones News
Carillion PLC (CLLN.LN), a support services company, with its
joint venture partners in the Local Education Partnership (LEP),
announced Tuesday it has achieved financial close on the GBP500
million Durham Building Schools for the Future (BSF) programme,
part of the U.K. Government's GBP55 billion BSF programme.
MAIN FACTS:
-The LEP, comprising Durham County Council, Building Schools for
the Future Investments LLP (BSFI) and Carillion, will deliver over
40 schools in four waves over the 10-year contract period.
-The first wave of nine schools, which comprises seven secondary
schools, one Special Educational Needs (SEN) school and one primary
school, has a combined capital cost of approximately GBP110 million
and will be completed by September 2012.
-Three schools in the first wave will be privately financed by a
combination of borrowing and equity.
-Barclays (BARC.LN) and Nationwide (NANW.LN) will each provide
GBP26.5 million of the GBP53 million of debt finance required.
-The LEP shareholders will invest GBP5.8 million of equity in
the project, of which Carillion's share will be GBP4.6 million.
-Carillion will also provide facilities management services for
the three privately financed schools, worth GBP25 million over the
25-year concession period.
-The three subsequent waves of the Durham BSF programme will
deliver the remaining schools with an estimated capital cost of
GBP390 million.
-By London Bureau, Dow Jones Newswires; Contact Ian Walker; +44 (0)20 7842 9296; ian.walker@dowjones.com