Published on 5/18/2022 in the Prospect News Investment Grade Daily.
New Issue: Essential Utilities sells $500 million 5.3% 30-year notes at 225 bps over Treasuries
Chicago, May 18 – Essential Utilities, Inc. sold $500 million of 5.3% 30-year senior notes at 99.128 to yield 5.359% (Baa2/A-), according to an FWP filing with the Securities and Exchange Commission.
The notes priced with a spread of 225 bps over Treasuries.
The notes may be optionally redeemed at any time with a make-whole premium of Treasuries plus 35 bps until Nov. 1, 2051 when they can be redeemed at par.
PNC Capital Markets LLC, BofA Securities, Inc., Wells Fargo Securities, LLC and RBC Capital Markets LLC are the joint bookrunners.
Proceeds will be used to repay borrowings under the company’s revolving credit facilities and for general corporate purposes.
Essential Utilities is a Bryn Mawr, Pa.-based holding company for regulated utilities, providing water, wastewater or natural gas services to customers in Pennsylvania, Ohio, Texas, Illinois, North Carolina, New Jersey, Indiana, Virginia, West Virginia and Kentucky under the Aqua and Peoples brands.
| Issuer: | Essential Utilities, Inc.
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| Amount: | $500 million
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| Issue: | Senior notes
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| Maturity: | May 1, 2052
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| Bookrunners: | PNC Capital Markets LLC, BofA Securities, Inc., Wells Fargo Securities, LLC and RBC Capital Markets LLC
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| Co-managers: | Barclays, Citizens Capital Markets, Inc., Huntington Securities, Inc., Morgan Stanley & Co. LLC, Robert W. Baird & Co. Inc., Bancroft Capital, LLC, Evercore Group LLC, Janney Montgomery Scott LLC and TD Securities (USA) LLC
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| Trustee: | U.S. Bank Trust Co., NA
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| Counsel to issuer: | Simpson Thacher & Bartlett LLP and Ballard Spahr LLP
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| Coupon: | 5.3%
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| Price: | 99.128
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| Yield: | 5.359%
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| Spread: | Treasuries plus 225 bps
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| Call features: | Make-whole call at Treasuries plus 35 bps prior to Nov. 1, 2051; thereafter at par
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| Trade date: | May 18
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| Settlement date: | May 20
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| Ratings: | Moody’s: Baa2
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| S&P: A-
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| Distribution: | SEC registered
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| Cusip: | 29670GAG7
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