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American Water Works Company, Inc. (NYSE: AWK) (“American Water”), the largest publicly traded U.S. water and wastewater utility company, today announced that its financing subsidiary, American Water Capital Corp. (the “Company”), is commencing a cash tender offer for up to $300 million (the “Maximum Tender Amount”) of its 6.085% Senior Notes due 2017 (the “Notes”). The terms and conditions of the tender offer are described in the Offer to Purchase, dated September 10, 2013 (the “Offer to Purchase”), and the related Letter of Transmittal.
The following table sets forth some of the terms of the tender offer, which are more fully set forth in the Offer to Purchase and Letter of Transmittal:
Reference U.S.Treasury Security
1.5% U.S. TreasuryNote due August 31,2018
For each $1,000 principal amount of Notes validly tendered.
For each $1,000 principal amount of Notes validly tendered, based upon a Reference Yield (as defined below) of 1.712% as of 1:00 p.m., New York City Time, on September 9, 2013, and the expected Payment Date (as defined in the Offer to Purchase) of October 8, 2013 ; excludes accrued and unpaid interest. The hypothetical Total Consideration should be used solely for the purpose of obtaining an understanding of the calculation of the Total Consideration, as quoted at hypothetical rates and times, and should not be used or relied upon for any other purpose.
If holders of Notes validly tender Notes in an aggregate principal amount in excess of the Maximum Tender Amount, the Company will accept for purchase an amount of Notes equal to such Maximum Tender Amount and will pay holders of such validly tendered Notes in accordance with the proration procedures set forth in the Offer to Purchase.