Published on 11/14/2016 in the Prospect News Investment Grade Daily.
New Issue: American Water Capital prices $550 million of 10- and 30-year notes
By Cristal Cody
Eureka Springs, Ark., Nov. 14 – American Water Capital Corp. priced $550 million of senior notes (A3/A) in two tranches on Monday, according to an FWP filing with the Securities and Exchange Commission.
The company sold $250 million of 3% 10-year notes at 99.818 to yield 3.021%, or 80 basis points over Treasuries.
American Water priced $300 million of 4% 30-year notes at 99.168 to yield 4.048%, or Treasuries plus 105 bps.
The bookrunners were BofA Merrill Lynch, Mizuho Securities USA Inc., RBC Capital Markets LLC, TD Securities (USA) LLC and Regions Securities LLC.
Proceeds will be used to repay commercial paper and for general corporate purposes.
The investor-owned water and wastewater utility is based in Voorhees, N.J.
| Issuer: | American Water Capital Corp.
|
| Support provider: | American Water Works Co., Inc.
|
| Amount: | $550 million
|
| Description: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Mizuho Securities USA Inc., RBC Capital Markets LLC, TD Securities (USA) LLC, Regions Securities LLC
|
| Co-managers: | BB&T Capital Markets, Academy Securities, Inc., Blaylock Beal Van, LLC, C.L. King & Associates, Inc., Loop Capital Markets LLC, Multi-Bank Securities, Inc.
|
| Trade date: | Nov. 14
|
| Settlement date: | Nov. 17
|
| Ratings: | Moody’s: A3
|
| S&P: A
|
| Distribution: | SEC registered
|
|
|
| 10-year notes
|
| Amount: | $250 million
|
| Maturity: | Dec. 1, 2026
|
| Coupon: | 3%
|
| Price: | 99.818
|
| Yield: | 3.021%
|
| Spread: | Treasuries plus 80 bps
|
| Call features: | Make-whole call at Treasuries plus 15 bps; on or after Sept. 1, 2026 at par
|
|
|
| 30-year notes
|
| Amount: | $300 million
|
| Maturity: | Dec. 1, 2046
|
| Coupon: | 4%
|
| Price: | 99.168
|
| Yield: | 4.048%
|
| Spread: | Treasuries plus 105 bps
|
| Call features: | Make-whole call at Treasuries plus 20 bps; on or after June 1, 2046 at par
|
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