Published on 5/2/2022 in the Prospect News Investment Grade Daily.
New Issue: American Water sells $800 million 4.45% notes due 2032 at Treasuries plus 150 bps
By Wendy Van Sickle
Columbus, Ohio, May 2 – American Water Capital Corp. priced $800 million of 4.45% senior notes due June 1, 2032 (Baa1/A) on Monday with a spread of 150 basis points over Treasuries, according to an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.683 to yield 4.489%.
Price talk was higher, for a spread in the area of 160 bps to 165 bps over Treasuries.
BofA Securities, Inc., Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC are the joint bookrunning managers for the notes.
Proceeds will be used to finance redemptions of some long-term debt and to fund repayment of short-term debt.
American Water is a water and wastewater utility company based in Camden, N.J.
| Issuer: | American Water Capital Corp.
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| Support provider: | American Water Works Co. Inc.
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| Amount: | $800 million
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| Issue: | Senior notes
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| Maturity: | June 1, 2032
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| Bookrunners: | BofA Securities, Inc., Mizuho Securities USA LLC, MUFG, RBC Capital Markets, LLC, J.P. Morgan Securities LLC, PNC Capital Markets LLC, TD Securities (USA) LLC, U.S. Bancorp Investments, Inc. and Wells Fargo Securities, LLC
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| Co-managers: | BNY Mellon Capital Markets, LLC, Regions Securities LLC, Truist Securities, Inc., Academy Securities, Inc. and Cabrera Capital Markets LLC
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| Coupon: | 4.45%
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| Price: | 99.683
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| Yield: | 4.489%
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| Spread: | Treasuries plus 150 bps
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| Make-whole call: | Treasuries plus 25 bps prior to March 1, 2032, then callable at par
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| Trade date: | May 2
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| Settlement date: | May 5
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| Ratings: | Moody's: Baa1
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| S&P: A
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| Cusip: | 03040WBA2
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| Price talk: | Treasuries plus 160 bps to 165 bps area
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