Thames Water Utilities
Limited
18 February 2025
Liquidity Extension Update -
Restructuring Plan Sanctioned
Thames Water Utilities
Limited announces that today the Court approved a restructuring
plan to extend the liquidity runway of the Thames Water
Group.
Following a
judgement of the High Court of Justice of England and Wales
(the "Court"), the restructuring plan proposed by Thames Water Utilities
Holdings Limited pursuant to Part 26A of the Companies Act 2006
(the "Company Plan")
in connection with implementing the liquidity extension transaction
(the "Liquidity Extension
Transaction") has been sanctioned by the Court.
Sir Adrian Montague,
Chairman, Thames Water said: "The Court's approval of the
Company Plan marks a significant milestone for Thames Water,
enabling us to proceed with the implementation of the Liquidity
Extension Transaction. Its implementation is a key step in
strengthening our long-term financial resilience and will allow us
to continue progressing the equity raise process and a holistic
recapitalisation transaction as well as complete the CMA appeal
process in respect of Ofwat's PR24 price review. Critically, it
enables the management team to continue progressing the
turnaround."
Chris Weston, CEO, Thames Water
commented: "We are pleased the Court
sanctioned the Company Plan. This is good news for our customers,
puts our business on a firmer financial footing and enables us to
continue to invest in our network and deliver critical
infrastructure upgrades for our customers and the environment.
Importantly, this decision will support the delivery of our
turnaround which is underway."
Liquidity Extension Transaction
As outlined in October 2024, this transaction, now sanctioned
by the Court, gives TWUL the opportunity to obtain up to £3 billion
super senior funding including:
·
An initial tranche of £1.5 billion to extend
liquidity runway until September 2025
·
Capacity for a further £1.5 billion across two
tranches of £750 million, to further extend liquidity to May 2026
if required, following TWUL's decision to make an appeal to the CMA
following receipt of the Final Determination
The funding will be released to TWUL
on a monthly, or on an interim basis, as required, subject to
continued satisfaction of conditions at that time, including that
TWUL has progressed towards a more holistic recapitalisation
transaction with the agreement of a sufficient proportion of its
creditors during the course of this year. The transaction will also
see maturities of all Class A Debt and Class B Debt (including
amortisation payments) extended by two years.
TWUL is considering the timetable
for implementation, which will depend on the impact of any
potential appeal process.
TWUL's equity raise process
continues to progress. On 11 February 2025, TWUL announced that it
had received proposals from a number of parties and it is now
conducting a detailed assessment of each bid.
-Ends-
For further information
Investor enquiries
Edwin Lloyd - Head of Investor
Relations
debt.investorrelations@thameswater.co.uk
Media enquiries
Alex Simmons
Edelman Smithfield
Thameswater@edelmansmithfield.com
Suvra Jans - Head of Media
Relations
Suvra.jans@thameswater.co.uk
07747 640810
Information contained in this
announcement would have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 as amended and
as it forms part of United Kingdom domestic law ("UK MAR") until
the release of this announcement. For the purpose of UK MAR and
Article 2 of Commission Implementing Regulating (EU) 2016/1055 as
it forms part of United Kingdom domestic law, this announcement is
made by Chris Weston (Director) at Thames Water Utilities
Limited.
LEI: 213800JKM5UQHFJOTZ25
