American Water to fund subsidiaries' debt via new senior offering

By Tali David

Minneapolis, Dec. 12 - American Water Capital Corp. plans to use the proceeds of its planned offering of senior notes due 2042 to lend funds to American Water's operating subsidiaries, according to a 424B3 filed with the Securities and Exchange Commission.

American Water expects the funds will be used to redeem about $152 million aggregate principal amount of long-term debt issued by such subsidiaries, as follows:

• $23,015,000 principal amount of 5.05% Pennsylvania private activity bonds due 2029;

• $20 million principal amount of 5.25% New Jersey private activity bonds due 2032;

• $35 million principal amount of 5.125% New Jersey private activity bonds due 2022;

• $5,615,000 principal amount of 5.15% Illinois private activity bonds due 2023;

• $11.7 million principal amount of 5% Illinois private activity bonds due 2028;

• $29,815,000 principal amount of 5.1% Illinois private activity bonds due 2029;

• $5.67 million principal amount of 5% Illinois private activity bonds due 2028;

• $13.72 million principal amount of 5.25% Illinois private activity bonds due 2027; and

• $7.46 million principal amount of 5% Indiana private activity bonds due 2028.

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

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