(Reuters) -UK's Southern Water on Tuesday said it has reached an agreement with over 72% of its creditors and controlling shareholders, clearing the way for a 655-million-pound ($888.90 million)
Southern Water Secures $916 Million in New Debt Financing Deal
(Reuters) -UK's Southern Water said on Tuesday it had agreed to terms for a debt raise worth 675 million pounds ($916.1 million), in addition to recent offers worth roughly 2 billion pounds in fresh equity and bonds.
The utility, which serves about 2.6 million customers across the UK, has been battling a debt crisis amid growing regulatory scrutiny over water pollution and under-investment.
The company had in April secured commitments to raise 800 million pounds through bonds, and another 1.2 billion pounds equity support package from Australia's Macquarie Asset Management.
In a separate statement, Southern Water said it had struck an agreement with more than 72% of its financing creditors and controlling shareholder to allow the injection of 655 million pounds in equity in November as part of Macquarie's proposed commitment.
The agreement includes certain waivers to default if the company's Class A credit rating is downgraded below investment grade by any two of Fitch Ratings, Moody's and S&P Global Ratings.
Macquarie has been trying to overhaul Southern Water's performance following years of operational shortcomings. It has already invested 1.65 billion pounds since it took a majority stake in 2021.
($1 = 0.7368 pounds)
(Reporting by Raechel Thankam Job in Bengaluru; Editing by Leroy Leo)
