Portsmouth Water Launches Consent Request to Amend its Financing Structure
25th February 2022
Background
Portsmouth Water is seeking to modernise its financing platform with the consent of its creditors. Today it has launched that consent process by formally seeking consent for requested amendments from Assured Guaranty UK Limited as its controlling creditor and guarantor of its borrowings from Artesian Finance. The consent triggers the commencement of a 10 business day period to allow other creditor to comment as appropriate. Assured Guaranty have indicated their intention to provide their consent.
What amendments are proposed to our financing platform?
The key amendments proposed today allow for:
(a) The replacement of a sinking fund to repay our borrowings that mature in 2032 with covenants that ensure we have the liquidity to refinance our borrowings; and
(b) Changes that allow derivative instruments to be secured by our existing security package and rank pari passu with our other secured debt creditors
Why are we making the changes?
We are making the changes now to ensure that the company’s financing platform allows the company to manage its risks in a timely and efficient manner. This consent request follows similar consent requests sought by other UK Water Companies who are borrowers from Artesian Finance.
What happens next?
Each of our Borrower Finance Parties will be provided with a copy of the consent request and details of the amendments proposed. While consent is not being sought from these parties because our controlling creditor is entitled to make this decision, they will have [10] business days to raise any entrenched rights ahead of implementation of the amendments.
For more information:
Chris Milner, Chief Financial Officer, +44 2392 24 92 51