U.K.-based special-purpose vehicle UPP Bond 1 Issuer PLC (the issuer) has issued £382.1 million of senior secured notes in two tranches, ranking pari passu: £307.1 million fixed rate due Feb. 28, 2040, and £75 million index-linked due Aug. 31, 2047. The notes are inaugural issues under the issuer's £5 billion multicurrency note program. We understand the issuer has onlent the proceeds 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
