Thames Water to pay $1 billion under creditor takeover deal, FT reports
Overview of Thames Water Creditor Takeover Deal
June 10 (Reuters) - UK's Thames Water could pay £749 million ($1 billion), including fees to bankers and lawyers if a proposed deal handing senior creditors control of the utility goes through, the Financial Times reported on Wednesday, citing a creditor submission.
Key Financial Details of the Deal
Breakdown of Costs and Fees
• Deal would include £160 million in fees to senior creditors and £254 million in other costs
• Thames Water would pay about £285 million in accrued interest to creditors on deal completion, and £50 million in fees owed to other creditors
Investment and Funding Arrangements
• The utility would avoid some new penalties over four years in return for £700 million investor funding to improve assets
• Creditors would inject £3.35 billion in new equity and provide £3.25 billion in new debt, plus an option to increase debt by £3.3 billion
• Thames Water will pay £160 million in commitment fees to some lenders backing the £6.55 billion debt package
Role of Apollo and Other Creditors
• Apollo will backstop the entire credit facility, and could receive the sum of £160 million, with other creditors taking smaller portions
Management and Regulatory Response
Proposed Management Plan and IPO
• Creditors have proposed a new management plan that could lead to a 2030 IPO
Regulatory Review and Stakeholder Comments
• Ofwat told the FT it was reviewing the proposals to assess whether they would benefit customers and the environment
• Thames Water, Silver Point, Apollo and Ofwat did not respond to requests for comment
Additional Information
Currency Exchange Rate
($1 = 0.7469 pounds)
Reporting Credits
(Reporting by Bipasha Dey in Bengaluru; Editing by Mrigank Dhaniwala)
