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Macquarie has agreed to struggle up to 1.2 billion GBP of new equity in the southern water in the southern water as part of the debts, which are due to the debts of the debtors of the holding.
SouthThe Australian owner will initially offer 655 million GBP equity in the company Pumpen-DAS 4.7 million customers in southeastern England’s water and sewage services.
Macquarie intends to provide additional equity of at least 245 million GBP by December, a sum that could increase up to 545 million GBP.
As part of the deal, Macquarie has also agreed to reschedule the lenders of the holding companies of Southern Water, which will apply considerable haircuts to the most risky bonds in the group’s multi -level financial structure.
While the finances of Southern are in a less precarious position than that of Thames Water, the largest water supply company in Great Britain, which previously belonged from Macquarie, it is still financially stressed on an observation list that was monitored by the supervisory authority, Ofwat. It has been under pressure on the debt markets because it could violate its alliances.
Southern also looks after some of the most popular beaches of Britain, including Brighton and Whitstable, from the general public and after years of undertaking. The company was considered Import water from the Norwegian fjords.
Southern will be will until 2030 Increase annual customer invoices From 222 to £ 642, the greatest increase that was agreed between the 11 privatized water and wastewater companies in the UK and the supervisory authority. This invoice increases to other inflation -bound increases.
Southern has addressed the British competitive and market authority to further increase the invoices over the next five years in order to finance the financing of upgrades.
In the meantime the company paid Managing Director Lawrence Gosden A bonus of £ 183,000 sterling Last year it helped increase its total salary by 79 percent to 764,200 GBP.
Southern announced on Tuesday that the debts in their holding companies would be reduced from GBP from 865 million GBP to 415 million GBP. Via Southern’s Operating Company there are two main debt stages that sit in a Middle Holding Company or a Top Holding Society.
Bond loyal, including ARES management and Australian infrastructure investor Westbourne Capital Writeown of your debts of around 370 million GBPaccording to a person who is familiar with the matter.
In return, you will receive an “equity-like” investment in the water company, the person added, in an agreement that is similar to a swap-for-equity swap, on which these bond believers receive a minority stake in the business.
The bonds of the Middle Holding Company will not find an impairment of the nominal value of their debts, said the person, but has agreed to change the debts and extend their due date.
According to the announcement, the term of the remaining debt facilities will be extended on Tuesday at least September 2030.
The Writedowns are seen as a possibility that the new equity will flow directly into the strong operating company of the utility company instead of using it to debt agency, further up in the capital structure.
In February, Macquarie undertook to get to the south of 900 million GBP to enter fresh value in the tender, an increase in the previously promised 650 million GBP.
“This additional equity investment shows our commitment to Southern Water and his management team and our conviction that the planned investment program will deliver for its customers and the environment,” said Martin Bradley, Senior Managing Director at Macquarie Asset Management.
