Summary
American Water Works Company, Inc. (AWK), through its wholly-owned subsidiary American Water Capital Corp. (AWCC), successfully closed a debt offering on April 14, 2020, raising approximately $989.3 million in net proceeds. This capital was generated by issuing $500 million of 2.800% Senior Notes due 2030 and $500 million of 3.450% Senior Notes due 2050. The proceeds are earmarked for various strategic uses, including lending to AWK's regulated businesses, repaying existing debt obligations, and general corporate purposes.
Key Highlights
- 1AWCC, a subsidiary of AWK, issued $1 billion in aggregate principal amount of Senior Notes.
- 2The offering consisted of $500 million in 2.800% Senior Notes due 2030 and $500 million in 3.450% Senior Notes due 2050.
- 3Net proceeds from the offering totaled approximately $989.3 million after underwriting discounts and before offering expenses.
- 4Proceeds will be used to fund AWK's regulated businesses, pay down existing debt, and for general corporate purposes.
- 5The debt issuance was facilitated by an Underwriting Agreement with major representatives including RBC Capital Markets, BofA Securities, and Mizuho Securities USA.
- 6The notes are supported by a guarantee from American Water Works Company, Inc.
Frequently Asked Questions
American Water Capital Corp. (AWCC) issued a total of $1 billion in aggregate principal amount of Senior Notes, comprised of $500 million due in 2030 and $500 million due in 2050.
The net proceeds will be used to lend funds to American Water and its regulated subsidiaries, to make sinking fund payments and repay maturing long-term debt ($28.4 million), to repay AWCC's commercial paper obligations, and for general corporate purposes, which may include repaying short-term indebtedness under credit facilities.
The company issued 2.800% Senior Notes due 2030 and 3.450% Senior Notes due 2050.
Yes, the Senior Notes have the benefit of a support agreement from American Water Works Company, Inc.