Thames Water Utilities Limited

Capital/Financing Update • Sep 20, 2024

National Storage Mechanism | Additional information

RNS Number : 0242F

Thames Water Utilities Limited

20 September 2024

Thames Water Utilities Limited

20 September 2024

Process Update

We previously announced that following the Price Review 2024 ("PR24") draft determination and our response to Ofwat, we would be engaging with potential investors and creditors to seek new equity and to extend our liquidity runway.

We submitted our response to Ofwat's draft determination for 2025 to 2030 on 28 August 2024. We plan to launch our formal equity solicitation process in the coming weeks. Any equity process is not expected to conclude until after the Final Determination, originally due in December 2024, which Ofwat are consulting on moving to January 2025. We will have the option to request an appeal of the Final Determination to the CMA.

We have been engaging with financial stakeholder groups and their advisors since July 2024 and are assisting with information requests to enable financial stakeholder groups to better understand Thames Water's business plan and future funding needs.

As at 31 August 2024, we had £1.57 billion of liquidity consisting of £1.15 billion of cash and cash equivalents (£0.38 billion of which is currently required to be placed in reserves under our financing) and £0.42 billion of Class A and Class B undrawn committed facilities. A further £0.55 billion of undrawn reserve liquidity facilities are available to support Thames Water should we enter standstill under our financing. The combination of these resources provides a liquidity runway to May 2025.

As contingency planning, we have entered into discussions with our financial stakeholders to release cash reserves under our financing. This would require majority creditor consent. If consent were not forthcoming and should it not be possible to draw the Class A and/or Class B facilities, available cash and cash equivalents would expire at the end of December 2024, whereupon we would enter standstill under our financing and the £0.55 billion undrawn reserve liquidity facilities and £0.38 billion of cash reserves would become available.

We, together with our financial stakeholders, are considering options for the extension of our liquidity runway to enable time to complete a recapitalisation transaction. In parallel, we continue to undertake contingency planning as a matter of good corporate practice.

For further information

Investor enquiries

Frederick Maroudas - Director of Corporate Finance

[email protected]

Media enquiries

Simon Haynes - Media Relations Manager

07747644910

[email protected]

Matt Young - Apella Advisors

07802 332292

[email protected]

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