BBC Completes $1.33 Billion Lease-Leaseback of London HQ

Juturna (European Loan Conduit No. 16) plc

The above link leads to the presale report on the Moody's Investor Servces web site which details The British Broadcasting Corporation's (BBC) Lease-Leaseback financing and redevelopment of its London headquarters, Broadcasting House. The securitization raised $1.33 billion (GBP 800 million) for the redevelopment Morgan Stanley managed the issue. BBC will pledge to bondholders the rental payments on its 150-year lease on its art deco building, shaped like a luxury liner, in London's West End. The fully amortizing Notes have a legal maturity of 30 years (weighted average life of 22.3 years.) with principal repayments being index-linked to the Retail Price Index, subject to a floor of 0% and a cap of 5%. An unconditional Financial Guarantee was provided by MBIA for scheduled payment of interest and principal under the Notes. The bondable, 30-year occupational lease with the BBC as sole tenant does not expose Noteholders to any development and/or construction risk. The securities were sold through Juturna (European Loan Conduit No. 16) PLC, a special purpose entity.
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