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UK water and sewerage company Anglian Water has partly replaced a portion of subordinated operating company debt with a sterling US private placement at an intermediate holding company as part of its new financing strategy.
The transaction was one of the final pieces of an overhaul of the company’s financial arrangements that has reduced the leverage of its regulated operations by shifting debt higher into the corporate structure. The issuance of a £300m sustainability-linked public bond in June was part of this plan.
With the recent private placement, the company also opted to replace dollar funding with sterling, a choice that is said to have limited the appeal of the transaction. Anglian is understood to have marketed the new sterling notes to a group of investors that previously held the dollar-denominated subordinated opco debt, but ended up placing the whole £100m deal with a single account. The...