This project involved two student accommodation PPPs at the University of Essex’s Colchester campus delivered by Uliving, made up of Bouygues/LinkCity, Derwent Housing Association and Equitix. Both transactions achieved financial close in the first half of 2017.
Meadows & Quays Refinancing: achieved with the issuance of £98.2m of long term, index-linked bonds, wrapped by Assured Guaranty. Rating agency Standard & Poor’s gave a standalone A rating to the bond issuance, which was increased to AA due to the monoline guarantees.
Operis Role as Financial Advisor: Development of the financing structure for the refinanced project and the transaction financial model. The efficiency of the new financing structure, combined with historically low-interest rates, allowed the proceeds of the bonds to repay the Project’s existing senior debt and generated a refinancing gain shared between the University and shareholders.
Progress Meadows Phase 2: Following this success, we advised on the development of 643 new build units with a 50-year operational phase. The senior debt financing again took the form of long term, index-linked bonds, wrapped by Assured Guaranty and rated BBB+ (standalone) and AA (guaranteed) by Standard & Poor’s. The highly competitive cost of capital delivered by the financing structure allowed Uliving to pay a substantial up-front capital receipt to the University as consideration for the grant of the concession