American Water to repay $327 million debt due 2018, 2021 via new deal

New York, Aug. 7 – American Water Capital Corp. plans to redeem up to $327 million of its debt securities due in 2018 and 2021 using proceeds from an offering of new senior notes, according to a 424B5 filing with the Securities and Exchange Commission.

The debt targeted for repayment has a weighted-average interest rate of 5.71%.

Proceeds from the new notes will also be used to repay at maturity the issuer’s $524 million of 6.085% senior notes due Oct. 15, 2017, to repay commercial paper and for general corporate purposes.

American Water announced on Monday plans for new notes due 2027 and 2047.

The issuer is a subsidiary of American Water Works Co., Inc., a Vorhees, N.J.-based water and wastewater utility.

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