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Transport

29 July 2010

TfL completes Tube Lines restructuring

Transport for London completed the acquisition of the Tube Lines Underground PPP project company on 27 June and the restructuring of its debt on 5 July. The process brings to an end the most complex, long-running and fraught UK PPP project ever. TfL, through London Underground Limited, bought out the equity in Tube Lines from Bechtel and Amey, the second of which is now part of Ferrovial, after the public and private partners could not agree on costs for a new round of work.

As part of the restructuring, the issuer, Tube Lines (Finance) stays in place, but its obligations become direct obligations of Transport for London. Three classes of bonds, £1.146 billion in A-1, £95 million in A-2C and £77 million in B, now share TfL’s AA (Fitch) rating, while £150 million of C bonds and £22 million of D bonds have been redeemed...


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