Thames Water Utilities Limited

21 February 2025

Liquidity Extension Update - Notice of Plan Effective Date

On 18 February 2025, Thames Water Utilities Limited ("TWUL") announced that the restructuring plan proposed by Thames Water Utilities Holdings Limited pursuant to Part 26A of the Companies Act 2006 (the "Plan") in connection with implementing the liquidity extension transaction (the "Liquidity Extension Transaction") was sanctioned by the High Court of Justice of England and Wales (the "Court").

Notice is hereby given that, pursuant to the Plan, the Plan Effective Date has occurred today, 21 February 2025, following (i) each Deed of Undertaking being executed and released, and (ii) the delivery of an office copy of the sealed Sanction Order to the Registrar of Companies for registration of the Plan. The Thames Water Group will now proceed with the initial implementation steps of the Liquidity Extension Transaction, with the final steps being taken following the outcome of any appeal process.

Chris Weston, CEO, Thames Water said: "We remain focused on putting Thames Water onto a more stable financial footing as we seek a long-term solution to our financial resilience and today's news demonstrates further progress.  We continue to work closely with our creditors, enabling us to continue to implement our turnaround plan so that we can deliver better results for our customers and the environment whilst seeking to attract new capital into the business.  The sanction of the Plan will not affect customer bills but will provide continued investment in our network to fix pipes, upgrade our sewage treatment works, and maintain high-quality drinking water. We remain of the view that a market led solution is in the best interest of customers, UK taxpayers and the wider economy."

The Liquidity Extension Transaction will provide the Thames Water Group with up to £3.0 billion in new super senior funding, including:

·    an initial tranche of £1.5 billion, which will be accessible after the satisfaction of certain conditions precedent; and

·    capacity for a further £1.5 billion across two tranches of £750 million, to further extend liquidity to May 2026 if required, following TWUL's decision to make an appeal to the CMA following receipt of the Final Determination.

The transaction will also see the maturities of all Class A Debt and Class B Debt (including amortisation payments) extended by two years, which will take effect on or around two business days after this announcement.

TWUL notes that an ad hoc group of Class B Debt creditors, Thames Water Limited and Charlie Maynard MP were each granted permission to appeal the Court's decision to sanction the Plan on certain grounds and have since filed and served notices of appeal. TWUL is grateful to the Court of Appeal for agreeing to its request that the appeals be heard on an expedited basis. The appeal hearing will now take place on 11-13 March 2025. TWUL remains confident in the Plan and is of the view that the Plan is in the best interest of all its stakeholders and is now focused on its delivery.

Capitalised terms used but not defined in this announcement shall have the meaning given to them in the Plan.

For further information

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Suvra Jans

Head of Media Relations

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