Thames Water Utilities Limited has announced a proposed transaction to extend its liquidity runway, including up to £3.0bn of new money in addition to access to cash reserves and debt extensions.
Thames said the completion of the Liquidity Extension Transaction and the related STID Proposals will improve TWUL’s liquidity runway to enable the company to continue with the planned investment and maintenance of its infrastructure. It will also allow the company to progress its equity raise process and a holistic recapitalisation transaction to complete the Final Determination process, including a CMA appeal if necessary.
Taking into account the Liquidity Extension Transaction and the related STID Proposals, TWUL’s liquidity would be extended to October 2025, with the ability to extend further to May 2026 if TWUL makes an appeal to the CMA.
The launch of the TSA follows engagement with committees of Secured Creditors together representing a substantial majority of TWUL’s Secured Debt.
Sir Adrian Montague, Chairman, Thames Water said: “The Board and leadership team remain focused on stabilising the business and today’s announcement is an important step in the process to increase its long-term financial resilience. There will be further stages and we will continue to work collaboratively with our many stakeholders as we look to attract new equity into the business and seek a final determination that enables the delivery of our ambitious business plan for the next five years.”
Chris Weston, CEO, Thames Water commented: “Today’s news demonstrates further progress to put Thames Water onto a more stable financial footing as we seek a long-term solution to our financial resilience. This step forward comes on top of our performance improvements which were recently recognised by Ofwat. We are working closely with and have the support of our creditors, enabling Thames to continue to implement our turnaround plan so that we can deliver better results for our customers and the environment whilst seeking to attract new capital into the business. In the meantime, our teams on the ground continue to supply our services to our 16 million customers every day.”
