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University Partnership Programme (UPP), a leading
provider of campus infrastructure and student
accommodation successfully closed a GBP 391m
debut bond in March from its GBP 5bn Secured Funding
Programme, UPP Bond 1 Issuer Plc.
UPP works with a wide range of university partners to
supply risk-free solutions for the funding, design, build,
and operation of high-quality academic and residential
facilities. These range from new developments to estate
transfers and the refurbishment of existing premises.
What is unique about this transaction is that it eliminates
the need for a controlling creditor, enabling the trustee to rapidly undertake recommended actions in relation to
the transaction. As banks continue to constrain |
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lending, use of the debt capital markets to finance infrastructure
projects is becoming increasingly popular. This type
of advancement will help attract private investors to
infrastructure deals as they can rely on an independent
third party to help monitor the project and relay important
information back to them.
The issuer which raised the funds has lent on to six
separate AssetCos currently contracting with universities
including the University of Kent, University of Nottingham,
Nottingham Trent University, Oxford Brookes University,
Plymouth University and University of York. These
AssetCos will then use the funds to repay existing debt
on certain building projects.
U.S. Bank was successfully appointed as note and
security trustee, principal paying agent, account bank,
agent bank and cash administrator. Our team will
work alongside an external "Monitoring Adviser" -
an innovation for the UK secured funding market.
This party will continually assess the condition of the
transaction from a creditor perspective, compile reports
and deal with consents and waivers during the life of the
transaction.
U.S. Bank is committed to working with and assisting
clients on new structures such as these and has
the experience and infrastructure necessary to add
considerable value. If you would like more information
about this transaction or the "Monitoring Adviser" please
don't hesitate to contact one of the team.
Interested in learning more about U.S. Bank Global
Corporate Trust Services? Visit us online at usbank.com/corporatetrust.
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