8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Jun 8, 2009)

Filed June 8, 2009For Securities:AWK

Summary

This Form 8-K filing from American Water Works Company, Inc. (AWK) on June 8, 2009, reports on a significant underwritten public offering of its common stock. The Company entered into an underwriting agreement on June 4, 2009, for the sale of 14,500,000 shares of its common stock, with an additional 11,500,000 shares being sold by RWE Aqua Holdings GmbH. The offering was priced at $17.25 per share. This transaction is important for investors as it indicates the company is raising substantial capital, with the Company expecting net proceeds of approximately $241.2 million. The filing also details a standard 90-day lock-up period for the Company, its officers and directors, and the selling stockholder, which restricts the sale of specified securities post-offering. This capital raise could be intended to fund growth initiatives, acquisitions, or other strategic investments for American Water Works.

Key Highlights

  • 1American Water Works Company, Inc. (AWK) is conducting an underwritten public offering of its common stock.
  • 2The Company will issue and sell 14,500,000 shares of its common stock.
  • 3RWE Aqua Holdings GmbH will sell an additional 11,500,000 shares of common stock.
  • 4The public offering price is set at $17.25 per share.
  • 5The Company expects to receive net proceeds of approximately $241.2 million from the offering.
  • 6A 90-day lock-up period is in place for the Company, its officers and directors, and the selling stockholder, restricting sales of certain securities.

Frequently Asked Questions

The primary purpose of this 8-K filing is to report on a significant underwritten public offering of American Water Works Company, Inc. common stock, including the details of the agreement with the underwriters and the terms of the stock sale.

American Water Works Company, Inc. is set to receive approximately $241.2 million in net proceeds from the sale of its shares in this offering.

RWE Aqua Holdings GmbH is identified as a selling stockholder and is selling 11,500,000 shares of American Water Works' common stock. The filing does not specify the exact reason for RWE Aqua Holdings GmbH's sale, but it is part of the larger underwritten public offering.

The 90-day lock-up period means that the Company, its officers and directors, and the selling stockholder are restricted from selling their company stock for 90 days following the offering, with certain exceptions. This typically aims to prevent immediate downward pressure on the stock price after the offering.