Macquarie’s request from Ares to take a full purchase on southern water debts

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Macquarie, which is controlled by Macquarie, asked to delete about 370 million pounds of debt, in an attempt to allow new shares to flow directly to the operating company that was largely moved.

The conversations place one of the largest private capital companies in America at the Finance Conflicts Center in another British water armored waters, just as the Times Water got an emergency loan from a group of creditors including American funds such as Elliott Management and Silver Point.

He asked the south-which provides water and sanitation services to customers of 4.7 million in southeastern England-from bond holders including Ares Management and Australian infrastructure investor Westporen Capital deleted all their debts, according to the people familiar with the matter.

Investors have debts at the level of Southern Holding Company, which includes about 370 million pounds of external bonds, according to the latest company’s files. The debt sits at the top of the capital structure and away from the operating assets in the tool, making the risk of investors to keep it.

Macquarie obtained the majority share in the south of 2021. Australian investor and lenders are negotiating a compromise for partial viewing, but they have not yet agreed on the conditions. Macquarie demands are still very slope for lenders, according to people familiar with discussions.

People added that a request for a full view was an opening position.

Ares, who supervises nearly $ 550 billion in assets, became an lend to the south when it acquired the work of the AMP Capital infrastructure in 2022. AMP became a lend to the south in 2018.

Southo Water, including Caisse De Dépôt et Platent du Québec, one of the largest pension boxes in Canada, can face future views. The bond holders sit between the company’s operational debts and bonds at the holding company.

Macquarie, Ares, Southern Water and CDPQ rejected the comment. Wesporne Capital did not respond to the comment.

South South affairs are less risky than those in the Thames, which is the largest water benefit in the UK and serves 16 million families. However, the tool is strongly owed and is under pressure in the debt markets amid concerns about its credit rating and the possibility of a debt in the debt.

Besides the suggested haircuts, Macquarie Asset Management, the owner of Soutering, version of 900 million pounds from fresh stocks in the company.

The goal of dribbling is to allow Macquarie to pump all the new money into Opening Soutering, instead of using part of it to serve debt at the holding company level, according to the people familiar with the matter.

Within the complex Souttern structure, the organized operational company – a “resonance” group is supposed to be protected from stress in the holding companies above – works with the debt ratio to stock about 70 percent.

After reducing the “Junk” classification by the Moody’s classification agency in November, Southern was oscillating on the ongoing payment of payment and fighting the increasing borrowing costs through its debt pile of more than 6 billion pounds.

The injection of stocks cools some market fears about the south, while restoring the prices of its bonds. The “negative evaluation monitoring” status is removed by Fitch.

At the end of last year, the utility borrowed 300 million pounds by selling the higher bonds in its operational company to a group of hedge boxes at an annual interest rate of 7.75 percent. In reference to its difficulties in raising the capital, Southern used a special process aimed primarily with hedge boxes to sell bonds.

Interest rates on the southern bonds are almost three times higher than the assumed borrowing cost in the sector.