Newly-formed U.K.-based special-purpose vehicle UPP Bond 1 Issuer PLC (the issuer) is proposing to issue £391 million of senior secured notes in two tranches, ranking pari passu: £261 million fixed rate due Feb. 29, 2040, and £130 million index-linked due Aug. 31, 2047. The proceeds will be used to refinance outstanding loans at six separate special purpose vehicles (the "AssetCos") currently operating accommodation for six U.K. universities under long-term concession agreements. We believe the project's business position to be strong. We view the financial profile of the transaction as aggressive, however, although this is partially mitigated by the cross-collateralization between the various AssetCos being financed. We are assigning our 'A-' preliminary issue rating to both senior secured tranches. The stable
