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Thames Water bondholders offer new structures as losses near 60%

Moody’s-linked analysis implies senior bondholders could face 35% to 60% losses, with debt trading around 62 pence on the pound.

Reported · Written up by our desk · Corporate Bonds

Thames Water bondholders are moving toward “golden share” and other supervisory arrangements after warnings that senior investors could face losses of up to 60%, according to Guardian Business.

The outlet says the shift follows a credible political threat of special administration at the utility, prompting bondholders to submit new ideas aimed at avoiding nationalisation.

The report notes that a potential golden share would likely give ministers some veto power over capital expenditure plans they consider too slow, while supervisory structures could increase influence over planning by municipal authorities and mayors.

Guardian Business adds that earlier proposed terms involved a 20% haircut, and that recent reference points from the latest Moody’s rating correspond to expected senior bondholder losses of 35% to 60%, with Thames’s senior debt trading at about 62 pence in the pound.

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