Southern reduces refinancing flexibility
- From: Vol 8, Issue 8 (August 2007)
- Category: General
- Region: Europe
- Country: United Kingdom
- Related Companies: Anglian Water, AWG, Barclays Capital, Collins Stewart, Mid Kent Water, Royal Bank of Scotland, Southern Water and Veolia
Southern Water’s latest bond issue leaves potential purchasers with limited balance sheet flexibility. It could mean owner RBS gets less for the asset than it had bargained for.
Southern Water issued a further £300 million of securitisation-type bonds in early July – shortly before formal invitations to bid for the company were issued to potential buyers – in a move that will further restrict any new owner’s ability to refinance the company’s debt.
The tap issue from the Southern Water Services (Finance) vehicle increased the programme’s total ...
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