American Water prices 7 million share offering at $142 per share

American Water Works Company (NYSE: AWK) announced the pricing of a registered underwritten offering of 7,042,254 shares of common stock at $142.00 per share. The offering includes a forward sale component where shares are expected to be borrowed by forward purchasers from third parties and sold to underwriters.

Wells Fargo Securities, J.P. Morgan, and Mizuho serve as joint book-running managers and underwriter representatives. American Water entered into forward sale agreements with Wells Fargo Bank, JPMorgan Chase Bank, and Mizuho Markets Americas LLC as forward counterparties for the aggregate share amount.

The company granted underwriters a 30-day option to purchase up to an additional 1,056,338 shares on the same terms. If exercised, American Water expects to enter additional forward sale agreements for the additional shares.

The offering is expected to close on August 6, 2025. American Water will not receive proceeds from shares sold by forward purchasers to underwriters. Settlement of the forward sale agreements is expected to occur on or prior to December 31, 2026, with the company planning to use any net cash proceeds from settlement for general corporate purposes.

The Camden, New Jersey-based company operates as the largest regulated water and wastewater utility in the United States, serving more than 14 million people across 14 states and 18 military installations with approximately 6,700 employees.

The offering is being conducted under American Water's effective shelf registration statement filed with the Securities and Exchange Commission.

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