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Wales & West Utl Fin (51UQ)

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Tuesday 16 March, 2010

Wales & West Utl Fin

Launch of Secured Covenanted

RNS Number : 6438I
Wales & West Utilities Finance PLC
16 March 2010
 

Issuer: Wales & West Utilities Finance plc
Date: 16
March 2010

Wales & West Utilities Finance plc (the "Issuer")
(incorporated with limited liability in England & Wales with registered number 6766848)

NOT FOR DISTRIBUTION TO ANY  U.S.  PERSON OR TO ANY PERSON OR ADDRESS IN THE UNITED STATES (SEE   FULL  OFFER RESTRICTIONS BELOW)  

Secured Covenanted Programme Launch

The Issuer announces today its intention to issue secured, guaranteed bonds (the "Bonds") for the financing of Wales & West Utilities Limited ("WWU") pursuant to a proposed £5 billion multicurrency secured financing programme (the "Secured Programme"). The Bonds will be irrevocably and unconditionally guaranteed by WWU and Wales & West Utilities Holdings Limited ("WWH", together with the Issuer and WWU, the "WWU Financing Group").

Holders of the Bonds will benefit from, among other things, a security package which includes security over the shares of WWU, a senior position within the debt structure of the Secured Programme and a comprehensive covenant package, including financial ratio covenants in respect of both net cashflow and debt. 

In connection with the proposed Secured Programme, the Issuer has prepared a Prospectus which contains full details of the structure of the proposed Secured Programme and the terms and conditions of the Bonds. It is expected that the Secured Programme will be established and the Bonds will be issued on or about 31 March 2010 (the "Programme Establishment Date").

Existing Bonds

In respect of the £250,000,000 6.25 per cent. Guaranteed Bonds due 2021 (ISIN Code: XS0438200361) (Common Code: 043820036) (the "Series I Existing Bonds") and in respect of the £200,000,000 5.125 per cent. Guaranteed Bonds due 2016 (ISIN Code: XS0471076876) (Common Code: 047107687) (the "Series II Existing Bonds", together with the Series I Existing Bonds, the "Existing Bonds") issued by the Issuer, the establishment of the Secured Programme by the Issuer will constitute a Securitisation as defined in and as contemplated by Condition 5 ("Securitisation Event") of the Conditions of the Existing Bonds.

Consequently, the Conditions of the Existing Bonds and other related documentation will be amended effective from the Programme Establishment Date in order to bring the Existing Bonds into the Secured Programme structure.  The Existing Bonds will benefit from, amongst other things, a security package which includes security over the shares of WWU, an overall improvement in their credit ratings, a senior position within the debt structure of the Secured Programme and a comprehensive covenant package, including financial ratio covenants in respect of both net cashflow and debt.  The Issuer expects the Existing Bonds to be rated A- by S&P and Fitch on the Programme Establishment Date.

For further information, please contact:

Adrian Breakspear
Wales & West Utilities Limited
Wales & West House
Spooner Close
Celtic Springs
Coedkernew
Newport NP10 8FZ

Tel: 02920 278841
Email:
[email protected]
Website:
www.wwutilities.co.uk

DISCLAIMER

Please note that the information contained in the Prospectus may be addressed to and/or targeted at persons who are residents of particular countries (specified in the Prospectus) only and is not intended for use and should not be relied upon by any person outside these countries and/or to whom the offer contained in the Prospectus is not addressed. Prior to relying on the information contained in the Prospectus you must ascertain from the Prospectus whether or not you are part of the intended addressees of the information contained therein.

Your right to access this service is conditional upon complying with the above requirement. 

This release does not constitute an invitation to participate in the Secured Programme in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such invitation under applicable securities laws.

No offer is being made pursuant to this release. None of the WWU Financing Group companies makes any recommendation in connection with the Secured Programme. This press release is not being made and will not be made directly or indirectly in or into, or by use of the mails of, or by any means or instrumentality of interstate or foreign commerce of, or any facilities of a national securities exchange of, the United States or to U.S. persons (within the meaning of Regulation S under the United States Securities Act of 1933, as amended (the " Securities Act ")). This includes, but is not limited to, facsimile transmission, electronic mail, telex, telephone and the internet. Accordingly, copies of this press release are not being, and must not be, directly or indirectly mailed or otherwise transmitted, distributed or forwarded in or into the  United States.  

The communication of this press release and any other documents or materials relating to the Secured Programme is not being made, and such documents have not been approved, by an authorised person for the purposes of section 21 of the Financial Services and Markets Act 2000. Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the  United Kingdom . The communication of such documents and/or materials as a financial promotion is only being made to those persons in the United Kingdom falling within the definition of Investment Professionals (as defined in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the " Order ")) or persons who are within Article 43 of the Order or any other persons to whom it may otherwise lawfully be made under the Order.


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