American Water talks $900 million three-year convertibles at 3.375% to 3.875%, up 22.5% to 27.5%

By Abigail W. Adams

Portland, Me., June 26 – American Water Capital Corp. plans to price $900 million in three-year convertible notes after the market close on Monday with price talk for a coupon of 3.375% to 3.875% and an initial conversion premium of 22.5% to 27.5%, according to a market source.

J.P. Morgan Securities LLC and Mizuho Securities USA Inc. are bookrunners for the Rule 144A offering.

The notes are non-callable.

They are putable upon a fundamental change.

They will be settled in cash up to the principal amount with any remainder to be settled in cash, shares or a combination of both at the company’s option.

Proceeds will be used to repay the company’s commercial paper and for general corporate purposes.

American Water Capital is a finance subsidiary of American Water Works Co. Inc., a Camden, N.J-based water and wastewater utility.

© 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.