Southern Water at risk of debt default in event of further credit downgrades

Quick Summary:

On top of the steep coupon payments, the bond was issued at a deep discount to face value: Southern raised £272mn but is still on the hook to repay £300mn to the lenders in 2031.

In another indication of the strain on the utility’s access to capital, Southern had to raise the bond in a private process primarily aimed at hedge funds, according to people familiar with the sale.

Southern is among the UK’s most indebted water companies, and struggling with rising borrowing costs.

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Article Details

Author / Journalist: Robert Smith

Category: MarketsFinanceInvesting

Markets: United StatesAustralia

Topics: Southern Financial Borrowing Costs Debt Company Companies £300mn Water Bond

Source Website Secure: Yes (HTTPS)

News Sentiment: Negative

Fact Checked: Legitimate

Article Type: News Report

Published On: 2024-11-05 @ 17:57:39 (13 hours ago)

News Timezone: GMT -5:00

News Source URL: ft.com

Language: English

Article Length: 727 words

Reading Time: 5 minutes read

Sentences: 27 lines

Sentence Length: 27 words per sentence (average)

Platforms: Desktop Web, Mobile Web, iOS App, Android App

Copyright Owner: © Financial Times

News ID: 23436592

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Official Website: ft.com

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