Published on 8/11/2014 in the Prospect News Investment Grade Daily.
New Issue: American Water prices $500 million two-part sale of senior notes
By Aleesia Forni
Virginia Beach, Aug. 11 – American Water Capital Corp. sold a $500 million two-part issue of senior notes (Baa1/A-/) on Monday, according to a FWP filed with the Securities and Exchange Commission.
The company sold $300 million 3.4% notes due 2025 at 99.867 to yield 3.415%.
The notes priced with a spread of Treasuries plus 100 basis points.
There was also a $200 million add-on to the company’s existing 4.3% notes due Dec. 1, 2042 priced at 99.589 to yield 4.325%, or Treasuries plus 110 bps.
The original $300 million issue priced at 142 bps over Treasuries on Dec. 12, 2012.
The bookrunners were BofA Merrill Lynch, RBC Capital Markets LLC, RBS Securities Inc. and TD Securities.
The investor-owned water and wastewater utility company is based in Voorhees, N.J.
| Issuer: | American Water Capital Corp.
|
| Support provider: | American Water Works Co. Inc.
|
| Issue: | Senior notes
|
| Amount: | $500 million
|
| Joint bookrunners: | BofA Merrill Lynch, RBC Capital Markets LLC, RBS Securities Inc., TD Securities
|
| Co-managers: | U.S. Bancorp Investments Inc., MUFG, Williams Capital Group LP, Blaylock Beal Van, LLC, Loop Capital Markets LLC, MFR Securities, Inc., Mischler Financial Group Inc.
|
| Trade date: | Aug. 11
|
| Settlement date: | Aug. 14
|
| Ratings: | Moody’s: Baa1
|
| Standard & Poor’s: A-
|
| Distribution: | SEC-registered
|
|
|
| Notes due 2025
|
| Amount: | $300 million
|
| Maturity: | March 1, 2025
|
| Coupon: | 3.4%
|
| Price: | 99.867
|
| Yield: | 3.415%
|
| Spread: | Treasuries plus 100 bps
|
| Price talk: | Treasuries plus 110 bps to 115 bps
|
|
|
| Bonds due 2042
|
| Amount: | $200 million
|
| Maturity: | Dec. 1, 2042
|
| Coupon: | 4.3%
|
| Price: | 99.589
|
| Yield: | 4.325%
|
| Spread: | Treasuries plus 110 bps
|
| Price talk: | Treasuries plus 115 bps to 120 bps
|
|
|
|
|
© 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.
