Yorkshire Water aims to replace Cayman issuers with U.K. subsidiary

By Susanna Moon

Chicago, May 29 – Yorkshire Water Services Ltd. announced a consent solicitation for numerous series of notes issued by its financing group that will run until 11 a.m. ET on June 15.

Yorkshire Water is looking to substitute the issuers incorporated in the Cayman Islands, or Caycos, with a new wholly owned direct subsidiary incorporated in the United Kingdom, according to a company notice.

The company said that “maintaining a financing structure, which includes the Caycos (and also potentially Yorkshire Water Services Finance Ltd.) could be prejudicial to its relations with, and future price determinations by, Ofwat,” the release said.

“In addition, it could impact its ability to sustain the trust and confidence of its customers as it seeks to improve the transparency of its business. Consequently, the interests of the secured creditors may be adversely affected.”

Noteholder meetings have been set for June 20 in London.

The consent solicitation covers the following series of bonds issued by Yorkshire Water Services Finance Ltd. and guaranteed by Yorkshire Water Services Ltd., Yorkshire Water Services Holdings Ltd., Yorkshire Water Services Odsal Finance Ltd., Yorkshire Water Services Bradford Finance Ltd. and Yorkshire Water Services Odsal Finance Holdings Ltd.:

• £200 million 5½% guaranteed bonds due 2037;

• £65 million 1.8225% guaranteed retail price index-linked bonds due 2050;

• £125 million 1.462% guaranteed retail price index-linked bonds due 2051;

• £85 million 1.75756% guaranteed retail price index-linked bonds due 2054;

• £125 million 1.46% guaranteed retail price index-linked bonds due 2056; and

• £100 million 1.7085% guaranteed retail price index-linked bonds due 2058.

The following notes were issued by Yorkshire Water Services Bradford Finance Ltd. and guaranteed by Yorkshire Water Services Ltd., Yorkshire Water Services Holdings Ltd., Yorkshire Water Services Finance Ltd., Yorkshire Water Services Odsal Finance Holdings Ltd. and Yorkshire Water Services Odsal Finance Ltd.:

• £275 million 6% guaranteed fixed-rate bonds due 2019;

• £300 million 6 3/8% guaranteed fixed-rate bonds due 2039, of which £200 million was issued on July 24, 2009 and £100 million was issued on April 23, 2010;

• £260 million 2.718% guaranteed retail price index-linked bonds due 2039, of which £175 million was issued on 24 July 2009 and £85 million was issued on 23 April 2010;

• A$50 million 5 7/8% class A unwrapped guaranteed bonds due 2023;

• £250 million 3 5/8% class A1 guaranteed unwrapped fixed-rate bonds due 2029;

• £50 million 1.803% guaranteed retail price index-linked bonds due 2042;

• £200 million 3Ύ% fixed- to floating-rate unwrapped guaranteed bonds due 2046; and

• £90 million 4.965% class B unwrapped guaranteed bonds due 2033.

The following notes were issued by Yorkshire Water Services Odsal Finance Ltd. and guaranteed by Yorkshire Water Services Ltd., Yorkshire Water Services Holdings Ltd., Yorkshire Water Services Finance Ltd., Yorkshire Water Services Odsal Finance Holdings Ltd. and Yorkshire Water Services Bradford Finance Ltd.:

• £210,692,000 6.5876% bonds due 2023;

• £135,476,000 6.454% bonds due 2027;

• £254,974,000 6.6011% bonds due 2031; and

• £127,811,000 3.30666% guaranteed retail price index-linked bonds due 2033.

The proposed amendments have been approved by a special committee that holds about 45% of the principal amount of the class A bonds and about 43% of the class B bonds originally issued.

The threshold needed is more than 50% of voted qualifying class A debt.

The instruction fee is 2.5 basis points.

The solicitation agents are Lloyds Bank Corporate Markets plc (+44 0 20 7158 1726/1719 or liability.management@lloydsbanking.com) and NatWest Markets plc (+44 0 20 7678 5282 or liabilitymanagement@natwestmarkets.com). The tabulation agent is Lucid Issuer Services Ltd. (+44 20 7704 0880 or yorkshirewater@lucid-is.com).

Yorkshire is a Bradford, England-based water supply and treatment utility company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.