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Centrus advises Yorkshire Water on successful removal of its Cayman Island companies

The UK based water and waste water provider, Yorkshire Water, yesterday received overwhelming support from its public bondholders and other private creditor groups for its initiative to improve transparency and customer trust by removing Cayman registered companies from its debt platform.

The results of a consent request were announced at a series of bondholder meetings held in London on 20th June 2018, following the launch of the proposals on 29th May 2018.

Over 90% of public bondholders in the Caymans companies voted in favour of the substitution proposals. In addition these entities received unanimous consent for the same proposal from US private placement investors. This means that the company will be able to achieve its objective of removing the Caymans companies from the group. The credit rating agency, Moody’s, has also stated that they expect this initiative should better position Yorkshire Water with the industry’s UK regulator, Ofwat, as it prepares to submit its business plans for the next price control on 3rd September 2018.

Centrus advised Yorkshire Water in the planning, design and implementation of the restructuring connected with the removal of the three Cayman registered companies. This was conducted over the period following the announcement of the company’s intention to remove the Cayman companies. The success of the proposal was based on ensuring a fair and transparent consent process with all creditors, backed by the required assurances regarding the impact of the proposals for creditors. The process included engagement with a broad range of stakeholders, including Ofwat, rating agencies and the UK’s HMRC.

David Gregg, Yorkshire Water Interim Head of Tax & Treasury This is great news for Yorkshire Water that reflects significant effort to ensure a successful outcome and to be able to deliver on the public commitment given last October. We thank all our advisors, including Centrus, for their support and expert advice through a complex process
Geoff Knight, Centrus Managing Director We are delighted to have supported Yorkshire Water on this important transaction which leads the way in the sector. We have advised the company from the early planning stages and announcement of the intention to remove the Cayman companies through to completion of the consent process. We would like to congratulate the company and its other advisors on delivering such a comprehensive result which allows the company to remove the Cayman companies from its financing group