United Utilities Water accepts tenders for £110.05 million 2025 notes

By Marisa Wong

Los Angeles, March 22 – United Utilities Water Finance plc announced the final results of its March 15 offer to purchase for cash its £450 million outstanding 2% fixed-rate notes due Feb. 14, 2025 with a par call date of Nov. 14, 2024 (ISIN: XS1769818227), guaranteed by parent United Utilities Water Ltd.

The issuer had offered to purchase up to £200 million aggregate nominal amount of the notes.

Holders had tendered £110,052,000 of the notes as of the expiration of the offer. The company will accept all of the tendered notes for purchase without any scaling.

The purchase price is 97.332, calculated using the 0.25% U.K. Treasury due Jan. 31, 2025 and a purchase spread of 45 basis points.

The issuer will also pay accrued interest.

The offer expired at noon ET on March 21.

Pricing was determined at or around 8 a.m. ET on March 22.

Settlement is slated for March 26.

After settlement, £339,948,000 of the bonds will remain outstanding.

The dealer managers for the offer are Deutsche Bank AG, London Branch (+44 20 7545 8011) and RBC Europe Ltd. (+44 20 7029 7420; liability.management@rbccm.com).

Kroll Issuer Services Ltd. (+44 20 7704 0880; attn.: Owen Morris; unitedutilities@is.kroll.com; https://deals.is.kroll.com/unitedutilities) is the tender agent.

The Warrington, U.K.-based water supply company said the offer is designed to proactively manage its debt maturity profile and to provide liquidity to current bondholders.

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