8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Aug 17, 2009)

Filed August 17, 2009For Securities:AWK

Summary

American Water Works Company, Inc. (AWK) filed an 8-K on August 17, 2009, to report on an underwritten public offering of its common stock. The offering, dated August 13, 2009, involved the sale of 35,000,000 shares by RWE Aqua Holdings GmbH, a significant shareholder, at a price of $19.25 per share. It is crucial for investors to note that American Water Works Company, Inc. will not receive any proceeds from this sale of shares, as the transaction is solely a sale by the Selling Stockholder. Furthermore, the Underwriting Agreement includes a standard 90-day lock-up period for the Company, its officers and directors, and the Selling Stockholder. This restricts the sale of specified securities during this period, subject to certain exceptions. Investors should monitor any potential changes or events that might influence this lock-up period or the future trading activity of AWK's common stock.

Key Highlights

  • 1RWE Aqua Holdings GmbH is selling 35,000,000 shares of American Water Works Company, Inc. common stock.
  • 2The public offering price for the shares is $19.25 per share.
  • 3American Water Works Company, Inc. will not receive any proceeds from this share offering.
  • 4The offering is being conducted through an underwritten public offering managed by Merrill Lynch, Pierce, Fenner & Smith Incorporated, Citigroup Global Markets Inc., and Goldman, Sachs & Co.
  • 5A 90-day lock-up period is in effect for the Company, its officers and directors, and the Selling Stockholder, restricting sales of specified securities.
  • 6The earliest event reported is dated August 13, 2009.

Frequently Asked Questions

The shares are being sold by RWE Aqua Holdings GmbH, a limited liability company organized under the laws of Germany, identified as the 'Selling Stockholder'.

No, the Company will not receive any proceeds from the sale of these 35,000,000 shares. The offering is a sale by the existing shareholder, RWE Aqua Holdings GmbH.

The 90-day lock-up period, agreed to by the Company, its officers and directors, and the Selling Stockholder, is a restriction on the sale of specified securities. This is a common provision in underwritten offerings to stabilize the stock price and prevent a large influx of shares into the market immediately following the offering.

The public offering price for the shares is $19.25 per share.