Centrus arranges £145m funding for South Staffordshire Plc

Transaction Overview

South Staffordshire Plc, an integrated services group that operates in essential services markets has agreed terms to borrow a total of £145m of new funding with terms ranging up to 10 years.

As part of the refinancing, and in line with Ofwat’s assumptions for the water sector, the group has committed to a new financing structure for its regulated water business, South Staffordshire Water Plc, that is intended to solidify its credit ratings.

This new structure was enabled by a liability management of debt across the group together with the new funding.

Centrus Solution

Centrus advised the client across the process, from the early structuring and credit rating considerations, to arranging the financing via a process including both institutional and bank terms.

Centrus also supported the delivery of the process to completion, including the terms of the liability management.

Features and Benefits

The new capital structure allows for additional credit rating headroom at South Staffs Water via the additional structural protective features of that insulated sub-group.

The new £145m debt raise at South Staffordshire Plc also introduces new lending relationships, both banking and institutional, that will continue to enable the growth plans for that part of the business.

“Centrus’ support throughout this process enabled the group to reinforce its capital structure via a dual-track liability management and fundraise process, delivered in a tight timetable and on competitive terms. This agreement provides a solid foundation from which the Group can continue to grow, building further on our existing successful track-record over many years.”

Rob O’Malley, Group CFO – South Staffordshire Plc

“Our work with South Staffordshire Plc is a great example on how we can read across our client’s requirements and implement clear financial and structuring advice to deliver them. South Staffordshire Plc is now better equipped to deliver its growth agenda, with new lending relationships to support them.”

David Cerqueira, Director – Centrus

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