The loan note has an expected term of 27 years and an initial value of £73.2 million. It is a refinancing of £58.0 million par value of subordinated loan notes previously held by GCP Infrastructure Investments, and constitutes a net new investment of £15.2 million by the company.
The loan note is secured on a cross-collateralised basis against 14 separate operational PFI projects, all of which were previously charged on a subordinated basis to the company. The projects are in the healthcare, education, leisure, courts and emergency service sectors.
The loan note will be issued by GCP Programme Funding Limited. The acquisition of the loan note has been financed fully from available cash reserves within the company.
GCP Infrastructure Investments is a closed-ended London Stock Exchange-listed investment company that seeks to generate returns from senior and subordinated infrastructure debt and related assets. The firm is advised by Gravis Capital Partners LLP.