American Water Sets $1.2 Billion Financing

American Water Works Co Inc. announced it has executed a note purchase agreement for $1.2 billion in senior unsecured notes at an interest rate of 4.92 percent.

American Water Works and its affiliates will use proceeds from the sale of the notes to fund the acquisition of the water and wastewater assets of Citizens Communication Company, to acquire the common stock of Azurix-North America and to reduce outstanding short-term debt.

On September 17, the company also announced that German utility RWE AG would purchase of all the outstanding common stock of American Water Works for $7.6 billion, upon receipt of shareholder and regulatory approvals.

Source: Reuters