New Issue: Essential Utilities sells $400 million 2.4% notes due 2031 at Treasuries plus 88 bps

By Devika Patel

Knoxville, Tenn., April 16 – Essential Utilities, Inc. sold $400 million of 2.4% senior notes (Baa2/A-) due May 1, 2031 at 99.875 to yield 2.414%, or Treasuries plus 88 basis points, on Thursday, according to an FWP filed with the Securities and Exchange Commission.

Barclays, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and RBC Capital Markets LLC were the bookrunners.

Proceeds are expected to be used to repay debt under the company’s credit agreement and revolver.

The company is a Bryn Mawr, Pa.-based water utility.

Issuer:	Essential Utilities, Inc.
Issue:	Senior notes
Amount:	$400 million
Maturity:	May 1, 2031
Bookrunners:	Barclays, Morgan Stanley & Co. LLC, Wells Fargo Securities LLC and RBC Capital Markets LLC
Co-managers:	BofA Securities Inc., PNC Capital Markets LLC, Citizens Capital Markets Inc., Huntington Securities Inc., MUFG, Robert W. Baird & Co. Inc., Boenning & Scattergood Inc., Evercore Group LLC, Janney Montgomery Scott LLC and TD Securities (USA) LLC
Coupon:	2.4%
Price:	99.875
Yield:	2.414%
Spread:	Treasuries plus 88 bps
Call:	Make-whole call at Treasuries plus 15 bps until Feb. 1, 2031, then a par call
Pricing date:	April 15
Settlement date:	April 19
Ratings:	Moody’s: Baa2
	S&P: A-
Distribution:	SEC registered

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