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Hospital PFI refinancing
Case studies

Hospital PFI refinancing

Background
  • The senior creditors of a UK Hospital PFI required an analysis of the various termination outcomes under the Project Agreement
  • The project is funded by an indexed bond and an EIB term loan
  • JCRA was mandated to model the various outcomes in line with the three termination provisions and provide a report showing the probable exposures and termination costs
  • JCRA was further mandated to perform a high level market sounding to determine appetite and likely spreads for a refinancing
Our Approach
  • JCRA developed a model to extract the necessary information from the active financial model
  • The JCRA model provided for the three termination events set out in the Project Agreement
  • JCRA valued the SPENS impact on both the listed bonds and EIB loan
  • JCRA provided a detailed report on the outcomes under the three termination scenarios
Benefits
  • The senior creditors and the project company are in a position to quantify the costs and returns under the three termination events set out in the PFI Project Agreement
  • The senior creditors and the project company have a better sense of where the UK market pricing is currently for a possible refinancing of the project
  • All parties have a sense of appetite for a possible refinancing for the project
 

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Project Finance & Infrastructure October 2018

Contact us

If you need hedging or debt advice or would like to speak to the team, please get in touch.