The New Terminal One at JFK’s Post

Thames Water, rather parent Kemble Water Finance, has defaulted on bond interest owed. Financial restructuring is now inevitable. Re-nationalisation is possible, too. But the great British public will be wary of any public financial commitment from the government. April was clearly when things were going to happen, but this comes sooner than expected, at the beginning of the month. Many investors will have been caught off guard by the timing and severity of the default. Clearly there are severe governance shortcomings, which many ESG ratings agencies are not picking up. Sustainalytics rates Thames a medium ESG risk, despite governance being a known ongoing issue for many years. Look out for other water companies, too. This issue is systemic and not going away just with a bit of derisking at Kemble. Banks, creditors, and shareholders hold onto your hats! You were repeatedly warned, and you stayed at the party because the free booze that kept on flowing was too much to resist! #ESG #governance #Sustainalytics #

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing

Troubled Thames Water Thames Water, a vital component of the UK’s water infrastructure, finds itself at a pivotal moment as its parent company defaults on its debt commitments. This default has reverberated throughout the company’s complex financial structure, prompting concern among stakeholders and regulators. The failure to fulfill bond payments not only puts the interests of shareholders in danger, including significant sovereign funds, but also raises questions about the utility’s sustainability within its existing governance and financial framework. Central to the issue is a convoluted series of corporate maneuvers, throughout the decade following Macquarie’s acquisition in 2006, during which billions in dividends were extracted. This has prompted speculation about the viability of the current model, with a risk of de facto nationalization. The British water privatization model, often regarded as a benchmark, is overseen by the regulator Ofwat, which normally ensures transparency, performance, and innovation. Clearly, a reassessment of this model is necessary. #water #waterprivatization #ppp #ofwat #thameswater #macquarie #watergovernance #sustainabledevelopment

GlobalCapital Corporate Bond Wrap: Thames Water’s holding company Kemble finally did what many saw as inevitable on Friday and defaulted on its £400m 2026 bond. Kemble also sent warning shots to bank lenders, saying in its official notice of default that it would not be paying interest or fees related to an undrawn working capital facility. A source close to one of the banks that provided a £190m loan to Kemble, which comes due at the end of this month, said there would be ramifications for the wider UK water sector from the default: https://lnkd.in/ecp9RjMK In more stable parts of the market, corporate bond issuers are trying to gee up their funding programmes to get more bonds done in the coming three months, even though many have already piled into the market in the first quarter. If tempting market conditions weren’t enough, issuers are eager to avoid printing at the back end of the year. Political risk is expected to rise sharply as 2024 nears its end. November brings the US presidential rematch between incumbent Joe Biden and ex-president Donald Trump, while on a smaller scale the UK is tipped to have a general election before the year is out. This has led many companies to front load their funding as much as possible, which means breaking some market norms like giving investors a bit of a rest by waiting three months or so before returning for the same currency: https://lnkd.in/evyR-4hC

Do the bonds foresee the end for Thames Water or Kemble Water Finance as maybe we should know them Fitch has today delivered their verdict by downgrading the parent company Kemble Water Finance from CC to CCC They note: 'Likely DDE Upcoming: With Kemble's shareholders not injecting the GBP500 million of equity into TWUL expected for end-March 2024, and Kemble considering it not possible currently to fulfill upcoming interest payments' No Relief from Liquidity Line: Fitch believes Kemble can no longer draw on its GBP150 million working capital facility for debt service of secured creditors. Fitch also believes that there is a high possibility that lenders of the working capital facility may exercise their right to halt further draws following the public announcement of liquidity constraints. They also noted: Limited Liquidity: TWUL's decision to distribute dividends (paid usually every six months) of GBP37.5 million in October 2023 has been subject to an information request from the UK water regulatory authority (Ofwat). To date, Ofwat has not taken action so far following its information request. Any adverse updates or negative regulatory developments could put additional strain on the already intricate A&E process at Kemble. Kemble's cash balance is estimated at about GBP20 million as of end-November 2023 while gross debt stands at GBP1.35 billion. The question of dividend payments is surely going to lead to questions if Thames Water/Kemble does cease to operate in whatever way and is further explored by Barry Gardiner here: https://lnkd.in/ecMrVs9S The lastest bid ask for the Thames Water Kemble 4.625% 20/26 bond that I found today was 15.395/19.27 https://lnkd.in/eu6F6Ebm As a summary Thames Water (as known on their customer communications) have 15 to 16 million house hold customers who are unable to opt to a different provider. The Fitch statement can be found here: https://lnkd.in/e6u4tPnj

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing

We advised on a bond issuance to refinance a portion of the costs relating to the New Terminal One Project of John F. Kennedy International Airport (JFK) in New York City. #Bonds #GreenBonds #Financing