LONDON - Thames Water Utilities Limited (TWUL) has initiated a consent process for a transaction support agreement aimed at extending its liquidity runway, the company announced today. The proposed transaction includes up to £3.0 billion of new funding, alongside access to existing cash reserves and debt extensions.
This financial maneuver is designed to enhance TWUL's liquidity until October 2025, with an option to extend further to May 2026, contingent on an appeal to the Competition and Markets Authority (CMA). The company's objective is to bolster its financial stability, allowing for continued investment and maintenance of its infrastructure to meet customer and environmental obligations.
The transaction follows discussions with committees representing a significant portion of TWUL's Secured Debt. Sir Adrian Montague, Chairman of Thames Water, emphasized that the announcement marks a critical step in reinforcing the company's long-term financial resilience. He also highlighted the ongoing efforts to attract new equity and achieve a final determination that supports the delivery of Thames Water's strategic plan for the next five years.
Chris Weston, CEO of Thames Water, remarked on the company's recent performance improvements acknowledged by Ofwat, the water services regulation authority. He expressed that the latest development demonstrates progress in stabilizing the company's finances as they continue to seek a lasting solution to financial challenges. Weston also noted the support from creditors and the company's commitment to delivering improved outcomes for customers and the environment while pursuing new capital investments.
The information in this article is based on a press release statement from Thames Water Utilities Limited.
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