American Water Capital talks $300 million 30-year notes in Treasuries plus 160 bps area

By Andrea Heisinger

New York, Dec. 12 - American Water Capital Corp. is in the market on Wednesday with a $300 million offering of senior notes due Dec. 1, 2042 (Baa2/BBB+/), according to a filing with the Securities and Exchange Commission.

There is a do-not-grow provision on the sale, a source said. Initial price talk is in the 160 basis points area.

The notes have a make-whole call until June 1, 2042 and a par call after that date.

Bookrunners are Bank of America Merrill Lynch, Goldman Sachs & Co. and RBS Securities Inc.

Co-managers are PNC Capital Markets LLC, U.S. Bancorp Investments Inc., TD Securities (USA) LLC and BNY Mellon Capital Markets LLC.

Proceeds will be used to finance redemptions of some long-term debt and to fund repayment of short-term debt.

The investor-owned water and wastewater utility company is based in Voorhees, N.J.

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