American Water Issues $500M 5.550% Senior Notes Due 2033

What Happened

• American Water Works Company, Inc. (through its finance subsidiary American Water Capital Corp., “AWCC”) announced the closing of a registered offering of $500.0 million aggregate principal amount of 5.550% Senior Notes due 2033.
• The underwriting agreement was dated September 14, 2026, and the offering closed on September 16, 2026; AWCC received approximately $496.6 million in net proceeds (after underwriting discounts, before offering expenses).
• The Notes benefit from a Support Agreement from American Water and were issued under AWCC’s existing indenture.

Key Details

• Amount issued: $500.0 million of 5.550% Senior Notes due 2033.
• Net proceeds: ~ $496.6 million (after underwriting discounts, before offering expenses).
• Uses of proceeds: (1) repay at maturity $250.0 million of AWCC’s 3.000% senior notes due Dec 1, 2026; (2) lend funds to American Water’s Regulated Businesses; (3) repay a portion of AWCC’s commercial paper; (4) general corporate purposes.
• Closing dates and documents: underwriting agreement dated Sept 14, 2026; offering closed Sept 16, 2026; notes issued under the Dec 4, 2009 Indenture.

Why It Matters

• The offering refinances near-term debt (half of the proceeds are earmarked to retire $250M due Dec 1, 2026), which reduces immediate refinancing pressure.
• It locks in long-term debt at a 5.550% coupon through 2033, affecting future interest obligations and the company’s debt maturity profile.
• Proceeds will also support regulated operations and liquidity (commercial paper reduction and intra-company lending), which is relevant to the stability of the regulated utilities business.