Melbourne hospital to raise A$1.4 bln debt-Moody's

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SYDNEY, Nov 27 (Reuters) - The Royal Children's Hospital in
the southern Australian city of Melbourne plans to raise A$1.4
billion ($1.2 billion) in debt to finance its redevelopment,
according to Moody's.

The public-private partnership project will be funded with
A$1.3 billion of senior inflation linked debt, A$60 million of
subordinated inflation linked debt and A$67 million of
subordinated debt, Moody's said in a statement on Tuesday.

The issuer is a funding vehicle called Ancora (RCH) Pty
Ltd.

Goldman Sachs JBWere is involved in the debt raising,
according to a market source. The source did not give
information on tranche sizes, maturities and pricing of the
debt.

The securities will be rated Aaa by Moody's because of a
guarantee by bond insurance company Financial Guaranty
Insurance Company (FGIC), the rating agency said.

On a stand-alone basis, the senior debt is rated Baa2 and
the subordinated debt is rated Ba1.

The hospital's redevelopment is led by a consortium
comprising investment and advisory firm Babcock & Brown
(BNB.AX: Quote, Profile, Research, Stock Buzz), builder Bovis Lend Lease (LLC.AX: Quote, Profile, Research, Stock Buzz), facilities manager
Spotless Group (SPT.AX: Quote, Profile, Research, Stock Buzz) and architects Billard Leece, Bates
Smart.

Construction is expected to be completed in 2011.

The contract with the State of Victoria is for 25 years.
($1=A$1.15)
(Reporting by Cecile Lefort)