Decision details

Cllrs Andrew Johnson and Claire Darke presented the report on recent discussions with the Council’s financial advisor, Ernst and Young, and Amber Infrastructure on a proposed refinancing of Highfields and Penn Building Schools for the Future (BSF) Private Finance Initiative (PFI) projects. The report provided background information on two potential refinancing options and the associated risks. Cllrs Johnson and Darke recommended that the Council proceed with Option 1 which was the more advantageous to the Council.

Resolved:

1.     That the Director of Governance be authorised to proceed with the Senior Debt Refinancing for the Highfields and Penn Fields Building Schools for the Future Private Finance Initiative Project Agreement as proposed by Amber Infrastructure as set out in Option 1 of the report.

2.     That the final decision on this matter and on the final details of the transaction be delegated to the Cabinet Member for Education and Cabinet Member for Resources in consultation with the Strategic Director People and Director of Finance, including delegation to approve any contracts or any documents necessary to complete the refinancing.

3.     That it be noted that the final net gain figure(s) may still be subject to fluctuations dependent upon the prevailing condition of the funding market at the close of the transaction e.g. final Interest Swap breakage cost.

4.     That it be noted that the recommendation presented within the report represents the most advantageous option that the Council can secure from this refinancing given current market conditions whilst maintaining an acceptable level of risk.