RNS Number:0191K
Bristol Water Holdings PLC
14 April 2003

Bristol Water Holdings plc Stock Exchange Announcement



Bristol Water Holdings plc announces that its regulated business, Bristol Water
plc is in the process of finalising new finance facilities, with completion
expected in early May.



Bristol Water plc currently has a relatively short debt maturity profile.  The
new structure will provide a better mix of financing and a considerably longer
maturity profile, more appropriate to the long term nature of its asset base.



The new facilities will provide for repayment of #20m of existing bank debt and
for raising the finance required for the on-going capital expenditure programme.
#15m of index linked debt will be drawn through the existing Artesian Finance
plc monoline wrapped bond programme arranged by The Royal Bank of Scotland,
previously used by three other water only companies.  An equivalent #30m
financing is being sought on a fixed interest basis through a new bond programme
to be issued by Artesian Finance II plc.  The facilities proposed to be entered
into by Bristol Water plc will extend to 2032 and 2033 respectively.  The
structures provide access to additional borrowing capacity.  The Board considers
the proposal attractive in terms of long term interest rate management.



The new facilities offer an improved maturity profile and flexibility for the
future, including the ability for substantially increasing the financial gearing
of the regulated business.  However, it is not the Board's current intention to
do so and, as such, no change is expected to Bristol Water plc's licence.



The Company reports its full year results on 29 May.



Enquiries -  0117 953 6407

Alan Parsons, Group Chief Executive

Andy Nield, Group Finance Director




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