8-KOther EventsExhibits & Filings

American Water Works Company, Inc. 8-K Report, Corporate Update (Nov 20, 2013)

Filed November 20, 2013For Securities:AWK

Summary

On November 20, 2013, American Water Works Company, Inc. (AWK), through its wholly-owned subsidiary American Water Capital Corp. (AWCC), successfully issued $400 million in aggregate principal amount of 3.850% Senior Notes due 2024. These notes are supported by a guarantee from the parent company, AWK. This debt offering provides AWK with additional capital, likely for ongoing infrastructure investments and general corporate purposes. The issuance was conducted under an underwriting agreement with major financial institutions including J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities, LLC. The details of the issuance, including the underwriting agreement and related legal opinions, were filed with the SEC as exhibits to this Form 8-K.

Key Highlights

  • 1American Water Capital Corp. (a subsidiary of AWK) issued $400 million in Senior Notes.
  • 2The notes carry a coupon rate of 3.850% and mature in 2024.
  • 3The issuance is backed by a support agreement from the parent company, American Water Works Company, Inc.
  • 4The debt offering was facilitated through an underwriting agreement with J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities, LLC.
  • 5The notes and support agreement were registered under the Securities Act of 1933.
  • 6This filing serves to report key documents related to the debt issuance, including the underwriting agreement and legal opinions.

Frequently Asked Questions

This Form 8-K filing is primarily to report the details of a significant debt issuance. Specifically, it announces the sale of $400 million in Senior Notes by American Water Capital Corp., a subsidiary of American Water Works Company, Inc.

American Water Works Company, Inc., through its subsidiary, raised $400 million by issuing 3.850% Senior Notes due 2024. These notes are guaranteed by the parent company.

The underwriters for this debt offering included J.P. Morgan Securities LLC, UBS Securities LLC, and Wells Fargo Securities, LLC, acting as representatives of the several underwriters.

The support agreement from American Water Works Company, Inc. provides a guarantee for the Senior Notes issued by its subsidiary, American Water Capital Corp. This enhances the creditworthiness of the notes for investors.