By Andrea Heisinger
Omaha, Oct. 16 - American Water Capital Corp. priced $1.5 billion of notes (Baa2/A-) in 10- and 30-year tranches Tuesday, an informed source told Prospect News.
The company priced a $750 million tranche of 10-year notes at par to yield 6.085%, or Treasuries plus 143 basis points. The tranche has a make-whole call at Treasuries plus 20 bps.
The company also sold a $750 million tranche of 30-year notes at par to yield 6.593%, or Treasuries plus 168 bps. There is a make-whole call at Treasuries plus 25 bps.
The notes were sold via Rule 144A.
Bookrunners were Citigroup Global Markets Inc., Goldman, Sachs & Co., Credit Suisse and Merrill Lynch.
The company is a subsidiary of American Water Works Co., based in Voorhees, N.J.
| Issuer: | American Water Capital Corp.
|
| Issue: | Notes
|
| Total amount: | $1.5 billion
|
| Bookrunners: | Citigroup Global Markets Inc., Goldman, Sachs & Co., Credit Suisse and Merrill Lynch
|
| Trade date: | Oct. 16
|
| Settlement date: | Oct. 22
|
| Distribution: | Rule 144A
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: A-
|
|
|
| 10-year tranche
|
| Amount: | $750 million
|
| Maturity: | Oct. 15, 2017
|
| Coupon: | 6.085%
|
| Price: | Par
|
| Yield: | 6.085%
|
| Spread: | Treasuries plus 143 bps
|
| Call: | Make-whole at Treasuries plus 20 bps
|
| Price talk: | 145 bps area
|
|
|
| 30-year tranche
|
| Amount: | $750 million
|
| Maturity: | Oct. 15, 2037
|
| Coupon: | 6.593%
|
| Price: | Par
|
| Yield: | 6.593%
|
| Spread: | Treasuries plus 168 bps
|
| Call: | Make-whole at Treasuries plus 25 bps
|
| Price talk: | 170 bps area
|
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