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