Summary
American Water Works Company, Inc. (AWK) announced through its wholly owned subsidiary, American Water Capital Corp. (AWCC), the successful closing of a $1.1 billion senior notes offering on May 13, 2019. The offering comprised $550 million of 3.450% Senior Notes due 2029 and $550 million of 4.150% Senior Notes due 2049. This strategic financing move is intended to provide significant capital for AWK's operations and future investments. The net proceeds, approximating $1,087.5 million after underwriting discounts, will be primarily allocated to lending funds to AWK's Regulated Businesses segment, repaying maturing debt obligations totaling approximately $50 million, and addressing AWCC's commercial paper obligations, with any remaining funds designated for general corporate purposes. This debt issuance strengthens AWK's financial position and supports its ongoing capital expenditure plans within its regulated utility operations.
Key Highlights
- 1AWCC, a subsidiary of AWK, successfully issued $1.1 billion in aggregate principal amount of senior notes.
- 2The offering included $550 million of 3.450% Senior Notes due 2029 and $550 million of 4.150% Senior Notes due 2049.
- 3Net proceeds from the offering were approximately $1,087.5 million after underwriting discounts.
- 4Proceeds are earmarked for lending to AWK's Regulated Businesses segment.
- 5The company will use a portion of the funds to repay approximately $50 million in maturing debt obligations.
- 6The issuance also aims to repay AWCC's commercial paper obligations and fund general corporate purposes.
- 7The debt offering was made under a registration statement filed with the SEC, indicating compliance with regulatory requirements.