Thames Water has announced it is seeking a further drawing of £157 million in July 2025 from the initial £1.5 billion loan available under the group's liquidity facility.

Thames has so far drawn £715 million of the initial £1.5 billion and now intends to request a further drawing of £157 million in July 2025, which will be made available to the water company in two tranches falling in July and August 2025. The statement announcing the latest move said:

"The company continues to work closely with stakeholders to secure a market led solution."

The liquidity facility includes conditions precedent to drawdowns which are presently unsatisfied because of the following:

1. On 13 June 2025, Mr Charles Maynard MP sought the permission of the Supreme Court to appeal the Court of Appeal's decision to sanction the restructuring plan.
2. On 28 May 2025, Ofwat issued an enforcement order under section 18 of the Water Industry Act 1991 which constitutes a Trigger Event under Thames Water Utilities Ltd (TWUL) finance documents.
3. TWUL will not have satisfied the so-called June Release Condition, which requires it to have entered into a supported lock-up agreement by 30 June 2025 in respect of a second restructuring plan.

Thames Water have today launched a third set of consent requests seeking the consent of their super senior creditors:

• to extend the June Release Condition to 31 July 2025;
• to waive the other two unsatisfied conditions precedent; and
• to make further related amendments to the super senior funding documentation.

The amendments include a requirement to repay the amounts drawn under the facility if Thames do not obtain the consent of the majority super senior creditors prior to making any payment of the penalty notices issued by Ofwat to Thames Water Utilities Ltd on 28 May 2025. They also include a request to streamline the voting procedures for obtaining the super senior creditors' consent to payments in respect of the Penalty Notices and to further extensions of the June Release Condition past 31 July 2025.

The consents, if granted, will allow Thames to draw a further £157 million from the initial £1.5 billion available under the facility, which will be on-lent in two tranches in July 2025 and August 2025. The Third Consent Requests have a voting date of 14 July 2025 and follow two previous sets of consent requests which were approved by creditors in April and May 2025.

Whilst the June Release Condition and the Appeal Condition remain unsatisfied, any further drawdowns of the remaining balance of the £1.5 billion super senior issuer funding will, subject to further consents and conditions having first been obtained or satisfied, be drawn in tranches sized in line with TWUL's liquidity needs. It is not intended that the further £1.5 billion accordion is accessed until the initial £1.5 billion facility has been drawn in full.

The High Court approved the £3 billion restructuring plan to extend the liquidity runway of the Thames Water Group in February 2025. The transaction sanctioned by the Court gives Thames Water the opportunity to obtain up to £3 billion super senior funding including:

• An initial tranche of £1.5 billion to extend liquidity runway until September 2025
• Capacity for a further £1.5 billion across two tranches of £750 million, to further extend liquidity to May 2026 if required.

The funding will be released to the water company on a monthly, or on an interim basis, as required, subject to continued satisfaction of conditions at that time. These include that Thames has progressed towards a more holistic recapitalisation transaction with the agreement of a sufficient proportion of its creditors during the course of this year.

The transaction will also see maturities of all Class A Debt and Class B Debt (including amortisation payments) extended by two years.