American Water prices tender offer for up to $300 million 6.085% notes

By Angela McDaniels

Tacoma, Wash., Sept. 24 - American Water Works Co., Inc. announced the purchase price that its financing subsidiary, American Water Capital Corp., will pay in the tender offer for up to $300 million of its $750 million outstanding 6.085% senior notes due 2017.

For each $1,000 principal amount, holders will receive $1,174.47. This includes a $30.00 early participation payment for each note tendered by 5 p.m. ET on Sept. 23, the early participation date.

The tender offer began Sept. 10 and will expire at 11:59 p.m. ET on Oct. 7.

The payment was determined using a fixed spread of 17 basis points over the yield of the bid-side price of the 1.5% U.S. Treasury notes due Aug. 31, 2018 as of 1 p.m. ET on Sept. 24.

The company will also pay accrued interest up to but excluding the payment date, which is expected to be Oct. 8.

If the principal amount of notes tendered exceeds $300 million, then the company will accept for purchase notes on a prorated basis.

The tender offer is not conditioned on any minimum amount of notes being tendered.

RBC Capital Markets, LLC (212 618-7822 or 877 381-2099) is the dealer manager. D.F. King and Co., Inc. (800 290-6426 or 212 269-5550) is the information agent and tender agent.

American Water is a water and wastewater utility company based in Voorhees, N.J.

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