Dear Newcastle upon Tyne City Council,

How much of your LOBO debt has been repaid and refinanced with PWLB debt?

Please list the LOBO loans that have been refinanced by counterparty, notional amount, original maturity and date of restructuring. Please disclose the break cost paid to the counterparty and the discount rate used in the valuation. Please disclose any additional PWLB borrowing undertaken to finance the restructuring including the maturities and coupon rates of new PWLB loans. Please disclose the name of any third-party adviser used on the restructuring.

Yours faithfully,

N Dunbar

Nicholson, Mark, Newcastle upon Tyne City Council

Dear Mr Dunbar

 

Your FOI Request

 

How much of your LOBO debt has been repaid and refinanced with PWLB debt?

 

Please list the LOBO loans that have been refinanced by counterparty,
notional amount, original maturity and date of restructuring. Please
disclose the break cost paid to the counterparty and the discount rate
used in the valuation. Please disclose any additional PWLB borrowing
undertaken to finance the restructuring including the maturities and
coupon rates of new PWLB loans. Please disclose the name of any
third-party adviser used on the restructuring.

 

Our Response

 

In November 2018, we repaid two loans held with Royal Bank of Scotland,
which were due to mature in 2058, totalling £30m.  The combined break cost
for the two loans was £17.8m and the discount rate used in the valuation
was 2.84%.  We re-financed these loans from PWLB 40-year borrowing at
2.76% (£30m) and 2.79% (£17.8m) generating an estimated annual saving of
£138k in year 1 rising to £622k in year 40.  We were advised by Tullet
Prebon.

 

If you are unhappy with our response to your request you can ask for an
internal review of our decision.  Please send details of your request for
review to the following address:

 

Information Governance Adviser

Newcastle City Council

Civic Centre
Newcastle upon Tyne
NE1 8QH

Telephone: 0191 277 7666
E-mail: [1][Newcastle upon Tyne City Council request email]

If you are still unhappy with how we have handled your request following
our internal review you can complain to the Information Commissioner. 
Contact details are as follows:

 

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone: 0303 123 1113
E-mail: [2][email address]

 

Thanks

 

Mark Nicholson

Assistant Director Financial Services

 

Newcastle City Council

Civic Centre

Newcastle upon Tyne

NE1 8QH

 

Email: [3][email address]

Phone: +44(0)191 211 5115 ext. 25115

Website: [4]www.newcastle.gov.uk

 

References

Visible links
1. mailto:[Newcastle upon Tyne City Council request email]
2. mailto:[email address]
3. mailto:[email address]
4. http://www.newcastle.gov.uk/

Nicholson, Mark, Newcastle upon Tyne City Council

Dear Mr Dunbar

 

I need to amend my original response (see below) to your FOI request to
clarify that Tullet Prebon were not formally acting as advisors to the
council in this matter.

 

Thanks

 

Mark Nicholson

Assistant Director Financial Services

 

Newcastle City Council

Civic Centre

Newcastle upon Tyne

NE1 8QH

 

Email: [1][email address]

Phone: +44(0)191 211 5115 ext. 25115

Website: [2]www.newcastle.gov.uk

 

From: Nicholson, Mark
Sent: 26 February 2019 12:34
To: '[FOI #550217 email]'
<[FOI #550217 email]>
Subject: Your FOI request (our ref 14751)

 

Dear Mr Dunbar

 

Your FOI Request

 

How much of your LOBO debt has been repaid and refinanced with PWLB debt?

 

Please list the LOBO loans that have been refinanced by counterparty,
notional amount, original maturity and date of restructuring. Please
disclose the break cost paid to the counterparty and the discount rate
used in the valuation. Please disclose any additional PWLB borrowing
undertaken to finance the restructuring including the maturities and
coupon rates of new PWLB loans. Please disclose the name of any
third-party adviser used on the restructuring.

 

Our Response

 

In November 2018, we repaid two loans held with Royal Bank of Scotland,
which were due to mature in 2058, totalling £30m.  The combined break cost
for the two loans was £17.8m and the discount rate used in the valuation
was 2.84%.  We re-financed these loans from PWLB 40-year borrowing at
2.76% (£30m) and 2.79% (£17.8m) generating an estimated annual saving of
£138k in year 1 rising to £622k in year 40.  We were advised by Tullet
Prebon.

 

If you are unhappy with our response to your request you can ask for an
internal review of our decision.  Please send details of your request for
review to the following address:

 

Information Governance Adviser

Newcastle City Council

Civic Centre
Newcastle upon Tyne
NE1 8QH

Telephone: 0191 277 7666
E-mail: [3][Newcastle upon Tyne City Council request email]

If you are still unhappy with how we have handled your request following
our internal review you can complain to the Information Commissioner. 
Contact details are as follows:

 

Information Commissioner’s Office
Wycliffe House
Water Lane
Wilmslow
Cheshire
SK9 5AF

Telephone: 0303 123 1113
E-mail: [4][email address]

 

Thanks

 

Mark Nicholson

Assistant Director Financial Services

 

Newcastle City Council

Civic Centre

Newcastle upon Tyne

NE1 8QH

 

Email: [5][email address]

Phone: +44(0)191 211 5115 ext. 25115

Website: [6]www.newcastle.gov.uk

 

References

Visible links
1. mailto:[email address]
2. http://www.newcastle.gov.uk/
3. mailto:[Newcastle upon Tyne City Council request email]
4. mailto:[email address]
5. mailto:[email address]
6. http://www.newcastle.gov.uk/

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