RNS Number:0198K
Bristol Water PLC
14 April 2003


Bristol Water plc Stock Exchange Announcement



Bristol Water plc announces that it is in the process of finalising new finance
facilities, with completion expected in early May.



The Company currently has a relatively short debt maturity profile.  The new
structure will provide a better mix of financing and a considerably longer
maturity profile, more appropriate to the long term nature of its asset base.



The new facilities provide for repayment of #20m of existing bank debt and for
raising the finance required for the on-going capital expenditure programme.
#15m of index linked debt will be drawn through the existing Artesian Finance
plc monoline wrapped bond programme arranged by The Royal Bank of Scotland,
previously used by three other water only companies.  An equivalent #30m
financing is being sought on a fixed interest basis through a new bond programme
to be issued by Artesian Finance II plc.  The facilities proposed to be entered
into by the Company will extend to 2032 and 2033 respectively.  The structures
provide access to additional borrowing capacity.  The Board considers the
proposal attractive in terms of long term interest rate management.



The new facilities offer an improved maturity profile and flexibility for the
future, including the ability for substantially increasing the financial gearing
of the Company.  However, it is not the Board's current intention to do so and,
as such, no change is expected to Bristol Water plc's licence.



A second interim dividend of #10m will be paid to the parent company at the end
of April.



The Company reports its full year results on 29 May.



Note: Bristol Water plc is a wholly owned subsidiary of Bristol Water Holdings
plc



Enquiries -  0117 953 6407

Alan Parsons, Chairman

Andy Nield, Finance Director




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