UK’s Southern Water Plans Bond After Deal With Creditors (1)

UK water utility Southern Water Ltd. is planning to sell bonds as it powers ahead with plans to stabilize its finances after securing an equity deal that helped it avoid a ratings downgrade.

The utility, which serves customers in several English counties, has mandated banks to sell a sterling bond as soon as Thursday. Earlier this month, it secured a £1.2 billion ($1.7 billion) equity package from owners led by Macquarie Asset Management.

The bond gives Southern Water some breathing room as it juggles a high debt burden with rising public pressure to fix sewage leaks that are polluting Britain’s ...