Healthcare Support reports event of default on 2.187% secured bonds

Chicago, April 17 – Healthcare Support (Newcastle) Finance plc reported that a number of trigger events have occurred relating to a collateral deed from May 4, 2005 due to certain service performance deficiencies at the Newcastle Hospitals PFI projects, according to a notice.

The company’s sister company Healthcare Support (Newcastle) Ltd. notified the bond trustee, who acts as a trustee of a bond trust deed for the company’s 2.187% index-linked guaranteed secured bonds, of the default and trigger events.

The events of default and trigger events allow the majority creditors rights of acceleration.

As of Monday, the majority creditors have not accelerated the amounts payable under the bonds or enforced security.

The company continues to work with the majority creditors, sub-contractors and the Newcastle Upon Tyne Hospitals NHS Foundation Trust with a view to improving service performance at the project.

The debt was issued by Healthcare Support (Newcastle) Finance in 2005 and lent to Healthcare Support (Newcastle) Ltd. to fund the design and construction of two new facilities at the Freeman Hospital and Royal Victoria Infirmary in Newcastle, according to an archived rating from S&P Global Ratings.

The special purpose entity was formed to raise debt. Healthcare Support constructs industrial buildings and is based in England.

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