American Water Works plans equity offer |
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Wed, 29 Aug 2007 16:08
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VOORHEES, N.J. (AP) - Water and wastewater utility company American Water Works Co., which filed for an initial public offering on Monday, plans to concurrently offer $500 million of its equity units.In a registration filing with the Securities and Exchange Commission on Wednesday, American Water Works did not disclose the number of units to be offered.The units will consist of a purchase contract obligating the unitholder to buy a certain number of company shares for $50. The unit also includes an ownership interest in $1,000 of senior notes due 2012.American Water Works said it plans to use the net proceeds to repay debt and for general corporate purposes.American Water is a subsidiary of RWE, a European electricity and gas company. In 2005, RWE announced it would exit its water activities in the U.S. and the U.K. RWE plans to sell its shares of American Water through its subsidiary Thames Water Aqua Holdings in more than one offering.In a filing with the Securities and Exchange Commission Monday, the company did not disclose the expected number or price range of shares to be offered, but indicated the maximum offering price could total $1.5 billion.All of the shares to be offered are being sold by stockholder Thames Water Aqua Holdings GmbH. American Water will not receive any of the proceeds from the initial public offering.The company expects to list the equity units and its common stock on the New York Stock Exchange.Goldman Sachs, Citi, and Merrill Lynch are serving as joint book-running managers of both the proposed equity offering and IPO.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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American Water Works files for IPO 