American Water Capital to price fixed-rate senior notes in two parts

By Marisa Wong

Los Angeles, Feb. 20 – American Water Capital Corp. plans to price fixed-rate senior notes in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will have the benefit of a support agreement from parent company American Water Works Co., Inc. but will not be guaranteed by any of American Water Works’ subsidiaries.

The notes will feature an optional make-whole call, followed by an optional par call some months prior to maturity.

U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC and PNC Capital Markets LLC are the joint bookrunners.

Computershare Trust Co., NA is the trustee.

Morgan, Lewis & Bockius LLP and in-house counsel will advise the issuer on legal matters. Sullivan & Cromwell LLP will be counsel for the underwriters.

The company intends to use proceeds to lend funds to American Water Works Co., Inc. and its subsidiaries in its regulated businesses segment; to repay at maturity its $400 million of 3.85% senior notes due March 1, 2024; to repay its commercial paper obligations; and for general corporate purposes.

American Water Works is a Camden, N.J.-based water and wastewater utility company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.