Decision details

To seek approval to consent to an amendment to the Facility Agreement to replace LIBOR with a market standard LIBOR replacement rate (SONIA compounded in arrears plus a fixed credit adjustment spread) in relation to the design, financing, construction, fitting out, commissioning and operation of a secondary school at The Mall, Brent.

i)            To approve the Council consenting an amendment to the Facility Agreement to replace LIBOR with a market standard LIBOR replacement rate (SONIA compounded in arrears plus a fixed credit adjustment spread) that Kenton School Services Limited (ProjectCo) and its Lenders are requesting in view of the discontinuation of LIBOR.

ii)           To approve sign off of the terms of consent.

This decision concerns the project agreement dated 24 January 2001, between 1) the Governing Body of JFS (Governing Body), 2) the Mayor and Burgesses of the London Borough of Brent (Council) and 3) Kenton School Services Limited (ProjectCo) for design, financing, construction, fitting out, commissioning and operation of a new secondary school at The Mall, Brent (the Project).

The ProjectCo and its Lenders entered into a Facility Agreement for the provision of facilities to assist in financing the Project. The Facility Agreement currently use LIBOR as the reference rate for calculating interest for the Facility Agreement however, as LIBOR is being discontinued the ProjectCo has written to the Council and the Governing Body (the Authorities under the Main PFI contract) to request their consent to an amendment to the Facility Agreement to replace LIBOR with a market standard LIBOR replacement rate (SONIA compounded in arrears plus a fixed credit adjustment spread).

The discontinuation of LIBOR is a decision that has been made by the Financial Conduct Authority. As such, it is something with which PFI funders and borrowers have had to comply

None.