8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Dec 17, 2012)

Filed December 17, 2012For Securities:AWK

Summary

American Water Works Company, Inc. (AWK), through its wholly-owned subsidiary American Water Capital Corp. (AWCC), announced on December 17, 2012, the successful sale of $300 million aggregate principal amount of 4.300% Senior Notes due 2042. This issuance was made under an underwriting agreement with prominent financial institutions and is backed by a support agreement from the parent company, AWK. The notes were registered under the Securities Act of 1933. This debt issuance provides AWK with additional capital, likely for ongoing operations, capital expenditures, or strategic initiatives. The fixed 4.300% interest rate on these long-term notes offers certainty regarding future interest expenses. Investors can view this as a strategic move by the company to secure long-term funding at a specific rate, which can be beneficial for financial planning and stability, especially in the regulated utility sector.

Key Highlights

  • 1American Water Capital Corp. (AWCC), a subsidiary of AWK, issued $300 million in Senior Notes.
  • 2The Senior Notes have a principal amount of $300 million and mature in 2042.
  • 3The coupon rate for the Senior Notes is 4.300% per annum.
  • 4The issuance was facilitated by an Underwriting Agreement with Goldman, Sachs & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated, and RBS Securities Inc.
  • 5A Support Agreement from the parent company, American Water Works Company, Inc. (AWK), benefits the notes.
  • 6The notes and support agreement were registered under the Securities Act of 1933.
  • 7The filing provides key exhibits related to the debt issuance, including the underwriting agreement and officers' certificate.

Frequently Asked Questions

The primary purpose of this Form 8-K filing was to report on the sale of $300 million of Senior Notes by American Water Capital Corp. (AWCC), a subsidiary of American Water Works Company, Inc. (AWK), and to provide certain exhibits related to this debt issuance.

American Water Works Company, through its subsidiary AWCC, raised $300 million in aggregate principal amount of Senior Notes. These notes carry a fixed interest rate of 4.300% and mature in 2042.

The Support Agreement, provided by the parent company American Water Works Company, Inc. (AWK), ensures a level of financial backing or commitment to the Senior Notes issued by its subsidiary AWCC. This can enhance the creditworthiness and investor confidence in the notes.

Registration under the Securities Act of 1933 signifies that the offering of these notes has been registered with the Securities and Exchange Commission (SEC). This process involves providing detailed information about the company and the securities to potential investors, ensuring a level of transparency and regulatory compliance.