Published on 2/20/2024 in the Prospect News Investment Grade Daily.
New Issue: American Water Capital sells $1.4 billion 10-year, 30-year notes
By Wendy Van Sickle
Columbus, Ohio, Feb. 20 – American Water Capital Corp. priced $1.4 billion of notes (Baa1/A) in two equal-sized tranches on Tuesday, according to an FWP filed with the Securities and Exchange Commission.
The issuer sold $700 million of 5.15% notes due March 1, 2034 at 99.681 to yield 5.191%.
The 2034 notes priced at a spread of Treasuries plus 92 basis points.
Additionally, the company sold $700 million of 5.45% senior notes due March 1, 2054 at 99.093 to yield 5.512%.
The 2054 notes priced a spread of 107 bps over Treasuries.
U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC are the joint bookrunners.
The company intends to use proceeds to lend funds to American Water Works Co., Inc. and its subsidiaries in its regulated businesses segment; to repay at maturity its $400 million of 3.85% senior notes due March 1, 2024; to repay its commercial paper obligations; and for general corporate purposes.
American Water Works is a Camden, N.J.-based water and wastewater utility company.
| Issuer: | American Water Capital Corp.
|
| Support provider: | American Water Works Co., Inc.
|
| Amount: | $1.4 billion
|
| Issue: | Senior notes
|
| Bookrunners: | U.S. Bancorp Investments, Inc., Mizuho Securities USA LLC, PNC Capital Markets LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc. and Wells Fargo Securities, LLC
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Huntington Securities, Inc., Regions Securities LLC, Scotia Capital (USA) Inc. and Siebert Williams Shank & Co., LLC
|
| Co-managers: | Academy Securities, Inc., Cabrera Capital Markets LLC, Roberts & Ryan, Inc. and Samuel A. Ramirez & Co., Inc.
|
| Trustee: | Computershare Trust Co., NA
|
| Counsel to issuer: | Morgan, Lewis & Bockius LLP and in-house
|
| Counsel to underwriters: | Sullivan & Cromwell LLP
|
| Trade date: | Feb. 20
|
| Settlement date: | Feb. 23
|
| Ratings: | Moody’s: Baa1
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 2034 notes
|
| Amount: | $700 million
|
| Maturity: | March 1, 2034
|
| Coupon: | 5.15%
|
| Price: | 99.681
|
| Yield: | 5.191%
|
| Spread: | Treasuries plus 92 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps until Dec. 1, 2033; thereafter at par
|
| Cusip: | 03040WBD6
|
|
|
| 2054 notes
|
| Amount: | $700 million
|
| Maturity: | March 1, 2054
|
| Coupon: | 5.45%
|
| Price: | 99.093
|
| Yield: | 5.512%
|
| Spread: | Treasuries plus 107 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps until Dec. 1, 2053; thereafter at par
|
| Cusip: | 03040WBC8
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
