American Water Capital plans to issue senior notes in two parts

By Marisa Wong

Los Angeles, May 10 – American Water Capital Corp. plans to price senior notes in two tranches, according to a 424B5 filing with the Securities and Exchange Commission.

J.P. Morgan Securities LLC, U.S. Bancorp Investments, Inc., Wells Fargo Securities, LLC, BofA Securities, Inc., Mizuho Securities USA LLC, MUFG, PNC Capital Markets LLC, RBC Capital Markets, LLC and TD Securities (USA) LLC are the joint bookrunners.

Proceeds will be used to lend funds to parent company American Water Works Co., Inc. and its subsidiaries in the regulated businesses segment; to prepay up to $340.6 million of the issuer’s outstanding long-term debt securities due in 2021 and 2023, which have a weighted average interest rate of 5.98%; to repay commercial paper of the issuer, which totaled $1.19 billion as of May 7 and has a weighted average maturity of 11 days and a weighted average annual interest rate of 0.17%; and for general corporate purposes.

American Water is a water and wastewater utility company based in Camden, N.J.

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