By Aaron Hochman-Zimmerman
New York, July 1 - Aqua America Inc. priced $58 million 30-year tax-exempt first mortgage bonds (/AA-/) with a coupon of 5% to yield 5.23% on behalf of subsidiary Aqua Pennsylvania Inc., according to a press release.
Jefferies & Co., Janney Montgomery Scott LLC, Boenning & Scattergood, Inc. and Edward D. Jones & Co. LP acted as underwriters for the negotiated bonds, which mature in 2039.
The bonds are callable in 2019.
"The strong S&P credit rating allows the company to continue to access the capital markets at reasonable rates and enables Aqua to contribute to the reduction of the overall embedded cost of debt for Aqua America companies, which is now at 5.6%," said chief executive officer Nicholas DeBenedictis in a statement.
"This has allowed us to maintain our business model and to finance infrastructure projects that will improve water quality and reliability, and benefit the local economy," he said.
Aqua America is located in Bryn Mawr, Pa.
| Issuer: | Aqua America Inc.
|
| Issue: | Tax-exempt first mortgage bonds
|
| Amount: | $58 million
|
| Maturity: | 2039
|
| Coupon: | 5%
|
| Yield: | 5.23%
|
| Call features: | Callable in 2019
|
| Underwriters: | Jefferies & Co., Janney Montgomery Scott LLC, Boenning & Scattergood, Inc. and Edward D. Jones & Co. LP
|
| Type: | Negotiated
|
| Pricing date: | July 1
|
| Rating: | Standard & Poor's: AA-
|
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