Thames Water - comment

Proposals are chasing each other as the As and Bs are squaring up ahead of a December process. This morning, Thames Water announced a proposed transaction with the Class A holders to extend its liquidity runway which includes up to £3.0bn of new money in addition to access to cash reserves and debt extensions. The proposal includes an initial Super- Senior Tranche of £1.5bn and a further two tranches of £750m could be made available on appeal to the CMA after receipt of the Final Determination. Importantly, this would only be the first of at least two restructurings and certain holders of the Class Bs have split from the As are looking through to round 2. More about that later today as we are looking for an angle to position ourselves.