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Moody's Investors Service has assigned a provisional A2 senior secured rating to the £76.3 million guaranteed bonds to be issued by the SPV vehicle, Solutions 4 North Tyneside Limited, for the North Tyneside housing PFI project.
Solutions 4 North Tyneside Limited is formed by Equitix and Miller Construction. The consortium was declared winner of the PFI project in March 2013. The total value of the contract was estimated at £300 million.
The bonds will finance the redevelopment of 924 sheltered housing dwellings at 26 sites across North Tyneside, England, under the terms of a Private Finance Initiative (PFI) project agreement with North Tyneside Council.
The SPV will additionally be responsible for providing facilities management services for 28 years, including during the initial three year construction period.
Bondholders will benefit from a financial guarantee of principal and interest payments from Assured Guaranty.