American Water Works Company, Inc., (NYSE:AWK) announced today that the Company’s financing subsidiary, American Water Capital Corp. (AWCC), closed on its inaugural long-term debt financing of $140 million. The securities were senior unsecured notes carrying an interest rate of 6.87% maturing on March 29, 2011. Proceeds were used to repay short term borrowings.
AWCC was formed in June 2000 to serve as the primary funding vehicle for American Water Works Company and its utility subsidiaries. AWCC's inaugural long-term debt financing aggregates the capital needs of nine utility subsidiaries and eliminates costs associated with nine separate smaller financings, to provide a lower overall cost of capital.
"We are extremely pleased by the market response to our initial long-term debt issue," said Ellen Wolf, the Company’s Chief Financial Officer. "The offering was substantially oversubscribed, indicating demand for securities from a consistent financial performer like American Water Works."
American Water Works Company, Inc. is the largest and most geographically diverse investor-owned water utility enterprise based in the United States. The Company provides water, wastewater and other water resource management services to more than 10 million people in 23 states.
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American Water Works
Company, Inc.
1025 Laurel Oak Road
P.O. Box 1770
Voorhees, NJ 08043
(856) 346-8200 |
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AWK is the trading symbol of
American Water Works Company, Inc., on the New York Stock Exchange, on which the common stock, 5% preferred and 5% preference stock of the Company are traded. |
