Thames Water lenders present Ofwat with 'best and final' offer

(Sharecast News) - Lenders ‌to embattled utility firm Thames Water have offered to pour £3.35bn of new ​equity and up to £6.55bn in fresh debt into the firm as part of an effort to lock in a rescue deal ​for the UK's largest water supplier. According to Sky News, the proposal ​was submitted by London & Valley Water, a consortium of ​senior lenders, including Elliott Management and Silver Point ‌Capital, and comes with commitments from the firm's largest ​shareholders not to offload a significant proportion ​of ⁠their stakes during the regulatory cycle to 2030. It also prevents Thames Water ⁠from ​paying dividends until ​2035.

Other details in the deal, which was said to be London & Valley Water's "best and final" pitch, include commitments to pay hundreds of millions in fines for pollution and sewage leaks, the establishment of a small community fund and to increase total spending over the next five years to roughly £20.5bn.

Thames ⁠Water has been in severe financial distress since June 2023, as it struggles with a £20bn debt pile, which could lead to temporary nationalisation and wipe out creditors if ​a long-term ​restructuring deal ⁠can not be reached.









Reporting by Iain Gilbert at Sharecast.com