Southern Water Secures £655m Equity Injection to Fund AMP8 Investment
Why we think this is good
The RNS announcement indicates that Southern Water has secured a significant £655 million equity injection to support its AMP8 investment programme. This is a positive development as it provides the necessary funding to drive the company's growth plans. The agreement with more than 72% of financing creditors also suggests strong support for the transaction, reducing execution risk. However, some uncertainty remains around the specific financial and operational impacts, as well as the timeline for the equity raise.
Key Points
- Southern Water secures £655 million equity injection to fund AMP8 investment programme
- Agreement backed by more than 72% of financing creditors
- Equity raise subject to certain conditions, including changes to finance documents
- Broader recapitalisation plan to reduce holding company debt by over 50%
Summary
Southern Water has secured a £655 million equity injection to support its AMP8 investment programme, with the backing of more than 72% of its financing creditors. The equity commitment is subject to certain conditions, including the implementation of changes to the company's finance documents. Southern Water is also seeking creditor consent for additional amendments to its financing arrangements. The transaction is part of a broader recapitalisation plan that will reduce the company's holding company debt by over 50%.