The £84m Surrey Streetlighting project reached financial close on Friday 27th November 2009. The project task is to upgrade and maintain several thousand streetlights within the county of Surrey.
The development phase will last 5 years and the full operational phase will last 20 years. Surrey County Council procured the project and were advised by PricewaterhouseCoopers. Barclays and Lloyds were the senior lenders and both John Laing and Skanska are the investors in project.
The senior debt is £77 million and the subordinated debt is £9 million. Margins on the senior debt were at 250bps during construction, increasing gradually to 280bps in the latter period of the operational phase. The subordinated debt coupon was 12.50%.
Operis audited the financial model, including the tax and accounting review, which was prepared by Investec.