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

By Devika Patel

Knoxville, Tenn., Aug. 7 – American Water Capital Corp. will conduct an offering of senior notes in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.

The notes will be sold in two fixed-rate tranches due in 2027 and in 2047.

The 2027 notes have a make-whole call until June 1, 2027 and then a par call, and the 2047 notes have a make-whole call until March 1, 2047 and then feature a par call.

J.P. Morgan Securities LLC, U.S. Bancorp Investments Inc. and Wells Fargo Securities LLC are the bookrunners.

Proceeds will be used to lend funds to American Water Works Co., Inc. and its subsidiaries, to repay $524 million of the issuer’s 6.085% senior notes due 2017 upon maturity on Oct. 15, 2017, to redeem up to $327 million of the issuer’s long-term debt securities due in 2018 and 2021, which have a weighted-average interest rate of 5.71%, to repay commercial paper obligations and for general corporate purposes.

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

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