United Utilities Water Limited Investor discussions re UUW's RPI Linked Notes (8088S)

TIDM51TW

RNS Number : 8088S

United Utilities Water Limited

14 March 2023

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION WITHIN THE MEANING OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK DOMESTIC LAW BY VIRTUE OF THE European Union (Withdrawal) Act 2018 (as amended), as supplemented by THE MARKET ABUSE (AMENDMENT) (EU EXIT) REGULATIONS 2019 (SI 2019/310).

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

INVESTOR DISCUSSIONS RELATING TO THE FALLBACK PROVISIONS IN UNITED UTILITIES' RPI-LINKED NOTES AS A RESULT OF PROPOSED CHANGES TO THE RETAIL PRICES INDEX (RPI) DUE TO COME INTO EFFECT IN FEBRUARY 2030

United Utilities Water Limited (the "Company") today provides an update relating to its notes and its subsidiary, United Utilities Water Finance PLC's ("UUWF") notes (notes issued by UUWF being unconditionally and irrevocably guaranteed by the Company) which reference the Retail Prices Index ("RPI") and mature during or after 2030 (the "Notes").

Following the decision by the UK Statistics Authority to amend, with effect from February 2030, the methods used to compile RPI to more closely align with the calculation of the Consumer Prices Index including owner-occupier housing costs, and the subsequent decision by the High Court, published in September 2022, to dismiss the judicial review of the UK Statistics Authority's proposals, the Company and UUWF have, together with their advisers, been considering the likely operation of the Notes' existing 'fallback' provisions upon a cessation of or fundamental change to RPI.

Following this review of the existing fallback provisions upon a cessation of or fundamental change to RPI, United Utilities determined that it was appropriate to update such fallback provisions included for RPI-linked notes in the United Utilities group's multi-issuer GBP10,000,000,000 euro medium term note programme (the "UU EMTN Programme") by, amongst other changes, including a fallback which references a relevant reference gilt (the "RPI Modifications"), thereby reducing the risk of the cessation of or a fundamental change to RPI resulting in redemption of any future Notes at their indexed par value.

The RPI Modifications are set out in Conditions 7.5 and 9.3 of the terms and conditions contained in the offering circular dated 24 November 2022 relating to the UU EMTN Programme (as supplemented from time to time) (the "Offering Circular"). A copy of the Offering Circular is available at www.unitedutilities.com/corporate/investors/credit-investors/debt-issuance .

Following the successful update of the UU EMTN Programme in November 2022 to reflect the RPI Modifications, the Company and UUWF determined that it would also be appropriate to commence discussions with certain holders of outstanding Notes with a view to modifying the relevant fallback provisions applicable to such Notes and which are expected to be engaged at the point the RPI reforms become effective in 2030. The Company commenced discussions with investors by forming a special committee of the Investment Association (the "Special Committee") in March 2023 to discuss the RPI Modifications. These discussions were very constructive, but their outcome was not conclusive. Following the discussions with the Special Committee, the Company and UUWF continue to assess their options in relation to each series of Notes. The Company and UUWF expect over the coming months to approach holders of one or more series of the Notes individually or as part of ad hoc groups for further discussions, with a view to discussing the RPI Modifications on the terms described above and potentially amending the terms and conditions of certain Notes to reflect the relevant provisions in the Offering Circular.

If appropriate, further announcements will be made in due course.

A copy of this announcement is available to view at www.unitedutilities.com/corporate . The content of the websites referred to in this announcement are not incorporated into and do not form part of this announcement.

 
 United Utilities contacts 
 Chris Laybutt, Director of Investor 
  Relations and Clean Energy Strategy    +44 (0) 7769 556 858 
 Brendan Murphy, Treasurer               +44 (0) 7717 099 887

This announcement contains inside information. The person responsible for making this announcement is Simon Gardiner, Company Secretary.

This announcement contains forward-looking statements in respect of the Company and the Notes. By their nature, forward-looking statements involve a number of risks, uncertainties or assumptions that may or may not occur and actual results or events may differ materially from those expressed or implied by the forward-looking statements. Accordingly, no assurance can be given that any particular expectation will be met and reliance should not be placed on any forward-looking statement. You should not place undue reliance on forward-looking statements, which are based on the knowledge and information available only at the date of this announcement's preparation.

United Utilities Group PLC - LEI: 2138002IEYQAOC88ZJ59

United Utilities PLC - LEI: 213800KYT12UFB2VE455

United Utilities Water Limited - LEI: 213800RQ5FMB2GQ69174

United Utilities Water Finance PLC - LEI: 213800313INX42GDLR44

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March 14, 2023 03:00 ET (07:00 GMT)

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