Thames Water to refinance £400 million of bonds due 2019, repay debt

By Susanna Moon

Chicago, Nov. 30 – Thames Water (Kemble) Finance plc said it plans to refinance £400 million of bonds due April 2019 and to repay debt issued by Thames Water Utilities Ltd. using proceeds of new financing.

Kemble Water Finance Ltd. closed £650 million of financing across five and seven-year tenors, with proceeds to be drawn between November and April 2019, according to a company notice.

The move is in line with the group’s “de-gearing plans,” the release noted.

Kemble has inked £190 million of term loans maturing in April 2024 and £460 million of note purchase agreements maturing between November 2025 and April 2026, at an average weighted cost of 5.16% on a fixed equivalent basis, the release said.

The financing follows the signing of Kemble's £110 million five-year working capital facility in October, replacing the previous £65 million facility, the company said.

“This is consistent with our prudent approach to financing and represents an important milestone in delivering our plans to de-gear both our operating company and the overall group between now and the end of AMP7,” Brandon Rennet, chief financial officer of Thames Water, said in the release.

Thames Water is a licensed water and sewerage company based in Reading, England.

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