Assured Guaranty (Europe) plc (AGE UK)* announced that it has guaranteed principal and interest payments on £90 million of bonds issued by Kingston Student Living LLP. The bond issuance will finance the refurbishment and redevelopment of existing student accommodations at Kingston University (the University). As a result of the guarantee from AGE UK, the bonds are expected to be rated AA by S&P Global Ratings.
The 35-year bonds, distributed in two tranches of fixed and index-linked debt, reached financial close on 29 July 2020 and took advantage of low long-term rates. The bonds were sold as a private placement to UK investors.
The bonds will finance the refurbishment and redevelopment of student accommodation spread across two existing University sites in Kingston - one at Kingston Hill and one at Seething Wells -providing a total of 1,333 bedspaces for students. The revamped student halls will incorporate refurbished bedrooms, kitchens and new social and study spaces.
Engie Regeneration will refurbish and complete the new development, delivering the accommodation in phases over two years. Engie Facilities Management will maintain the halls during the project term. The shareholders of the project company are Equitix, Engie and the University.
Dominic Nathan, Managing Director, AGE UK, commented:
"We are delighted to have closed another student accommodation financing that demonstrates the ability of our wrapped financing solution to provide an efficient form of financing for projects of this type. Despite difficult financial and general market conditions in 2020 and unprecedented overall public health and economic circumstances, our collaborative approach with the University and sponsors, along with investor demand for Assured Guaranty wrapped debt, has resulted in a successful deal for the University. We believe investors, whether direct lenders or bond purchasers, are attracted by the high rating and associated low capital charges our guarantee adds to long-term financings, along with the efficient asset-liability matching this type of investment can provide."
AGE UK guarantees timely payment of scheduled principal and interest to holders of debt instruments throughout the life of the debt, in accordance with the terms of its financial guarantees.
The advisers of AGE UK on the deal were Norton Rose Fulbright (legal adviser), AECOM (technical adviser), Cushman & Wakefield (demand adviser) and Marsh (insurance adviser). Traderisks acted as bond lead manager.
All of the securities having been sold, this announcement is for information purposes only. This announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities.
The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended ("Securities Act"), or with any securities regulatory authority of any state or jurisdiction of the United States, and may not be offered, sold or transferred, directly or indirectly, in the United States absent registration under the Securities Act or an available exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and the securities laws of any state or other jurisdiction of the United States.
* AGE UK (company number 2510099) is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. AGE UK provides its financial guarantee together with a co-guarantee from its affiliate Assured Guaranty Municipal Corp. (AGM).
Through its subsidiaries, Assured Guaranty Ltd. (AGL and, together with its subsidiaries, Assured Guaranty) is the leading provider of financial guarantees for principal and interest payments due on municipal, public infrastructure and structured financings. Its subsidiary AGM guarantees international infrastructure and U.S. municipal bonds. AGE UK, a subsidiary of AGM, is Assured Guaranty’s United Kingdom operating platform. AGL is a publicly traded (NYSE: AGO), Bermuda-based holding company. More information on AGL and its subsidiaries can be found at AssuredGuaranty.com.
Cautionary Statement Regarding Forward-Looking Statements:
Any forward-looking statements made in this press release reflect Assured Guaranty’s current views with respect to future events and are made pursuant to the safe harbour provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties that may cause actual results to differ materially from those set forth in these statements. These risks and uncertainties include, but are not limited to, those resulting from Assured Guaranty’s inability to execute its business strategies; the demand for Assured Guaranty’s financial guarantees; the development, course and duration of the COVID-19 pandemic and the governmental and private actions taken in response, and the global consequences of the pandemic and such actions; those risks and uncertainties resulting from changes in rating agency models or opinions; adverse credit developments related to Puerto Rico or other portions of Assured Guaranty’s guaranteed portfolio; and other risks and uncertainties that have not been identified at this time, management’s response to these factors, and other risk factors identified in AGL’s filings with the U.S. Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which are made as of 29 July 2020. Assured Guaranty undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
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Robert Tucker, +1 212-339-0861
Senior Managing Director, Investor Relations and Corporate Communications
Ashweeta Durani, +1 212-408-6042
Vice President, Corporate Communications