Thames Water Utilities Limited has announced a proposed transaction aimed at extending its liquidity runway. This plan includes up to £3.0 billion in new funding, along with access to cash reserves and debt extensions.
Thames Water Utilities Limited will initiate a consent process for a transaction support agreement (TSA) related to this liquidity extension transaction, detailed in a term sheet attached to the TSA, as well as associated STID Proposals.
The completion of the Liquidity Extension Transaction and the related STID Proposals will enhance TWUL’s liquidity runway, allowing the company to maintain its planned investments and infrastructure upkeep to meet customer demands and environmental obligations.
This will facilitate the equity raise process and a comprehensive recapitalization effort, enabling the completion of the Final Determination process, including a potential CMA appeal if needed.
With the Liquidity Extension Transaction and related STID Proposals, TWUL’s liquidity is projected to extend until October 2025, with the option to extend to May 2026 if an appeal is made to the CMA.
The TSA launch follows discussions with committees of Secured Creditors, representing a significant majority of TWUL’s Secured Debt.
Sir Adrian Montague, Chairman of Thames Water, stated: “The Board and leadership team are dedicated to stabilizing the business, and today’s announcement is a crucial step toward enhancing its long-term financial stability. Further stages will follow, and we will continue to collaborate with our stakeholders as we aim to attract new equity and secure a final determination that supports our ambitious five-year business plan.”
Chris Weston, CEO of Thames Water, remarked: “Today’s announcement signifies additional progress in placing Thames Water on a more stable financial path as we pursue a long-term solution for financial resilience. This advancement builds on our recent performance improvements recognized by Ofwat. We are closely collaborating with our creditors, allowing Thames to implement our turnaround strategy and deliver better outcomes for our customers and the environment while attracting new investment. Meanwhile, our teams continue to provide services to our 16 million customers daily.”
Source :Thames Water
