Thames launches process for additional funds
- Feb 15
- 1 min read
(by Verity Mitchell)
Thames Water has announced that it has now drawn £1.426bn of its £1.5bn super senior facility. Following consultation with its creditors, Thames can now take advantage of further funds under an accordion facility.
Thames’ subsidiary, the super senior issuer, has launched a process to allocate £833m — this being the first tranche of the accordion amount of £750m, augmented by a further £83m from deferred commitments and commitments which belong to the defaulting creditors.
This is an allocation process only. Disbursement of the funds will only be permitted when a number of conditions precedent have been either met or waived, which remain out of the control of the super senior issuer.
The election deadline is 5pm on 26 February. Thames Water says it is continuing to work on a market-led solution.
Honestly, it feels kinda wild that a big water company like Thames Water needs to start a whole process just to get more cash so it doesn’t run out and collapse. They’ve already taken most of the money from their emergency fund and now are trying to get another chunk of about £823 million by going through this “accordion” funding thing where creditors vote to give more money — but only if a bunch of conditions are met, which isn’t even guaranteed.