Press Release
22 February 2007
McGrigors advises on circa £104 million Dundee Schools Project
UK law firm McGrigors LLP has further established its strength in the PFI/education sector having advised Ambac Assurance UK Limited (Ambac UK) in the circa £104 million Dundee Schools PFI project for Dundee City Council.
McGrigors acted for Ambac UK as funders of the Discovery Education PLC consortium comprising Robertson Capital Projects Limited, PFI Investors Limited (a subsidiary of Sir Robert McAlpine) and Dundee City Council. The project is to be funded by the issue to Discovery Education PLC of circa £104 million secured index-linked guaranteed bonds, guaranteed by AAA – rated monoline Ambac UK, including £17 million of uncommitted variation bonds, with equity and sub debt of circa £9 million being provided on a pro rata basis by PFI Investors and Robertson Capital Projects.
Under the 30-year contract, Robertson Construction Tayside, Robertson Construction Central and Sir Robert McAlpine will build and maintain six new primary schools and two new secondary schools, Grove Academy and the New RC Secondary School.
The project will replace ten existing primary schools which have come to the end of their life cycles. All schools are scheduled to be completed by July 2009.
Drysdale Graham, a senior partner in the projects team at McGrigors, said: “This development underlines McGrigors’ expertise in the education PFI sector, and we are pleased to have brought the deal to a positive conclusion.
“The Scottish Executive recently celebrated the success of "Building Our Future", the largest ever PFI school building programme in Scotland’s history and McGrigors is proud to be a factor in that success.”
David George from Ambac UK, said: "This is the second Scottish schools project and the sixth PPP project that Ambac has wrapped in the last 12 months. It demonstrates the competitiveness and benefits that a capital markets solution can bring to projects of this nature. We look forward to a long and productive partnership with Dundee Council and Discovery Education."
Dundee is the 33rd schools deal closed by McGrigors under the UK Government's PFI initiative, and the firm is currently acting in a number of education deals throughout the UK and Ireland.
For further information please contact:
Louisa Hollins
Financial Dynamics
Telephone - +44 (0) 20 7269 7108
Email - Louisa.hollins@fd.com
Andy Peat
Financial Dynamics
Telephone - +44 (0) 20 7269 7185
Email - andy.peat@fd.com