American Water to offer $500 million in equity units due 2012

By Evan Weinberger

New York, Aug. 29 - American Water Works Co., Inc. announced that it will offer $500 million in equity units due 2012. There was no price talk available as of press time.

The deal is part of a coming initial public offering of American Water stock that will spin off the company from German utility giant RWE AG, a transaction announced in December 2006. A pricing date was not available as of press time.

Goldman Sachs, Citigroup and Merrill Lynch are bookrunners of the registered transaction.

American Water is a Voorhees, N.J.-based water utility that works in 23 states and one Canadian province.

The proceeds will be used to repay recent commercial paper borrowings. The balance of the net proceeds will go to general corporate purposes.

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