American Water Capital Corp. Closes $500M Senior Notes Offering

Executive Summary

On September 16, 2026, American Water Works Company, Inc. (NYSE: AWK) filed a Form 8-K announcing the execution and closing of a registered public offering of $500.0 million aggregate principal amount of 5.550% Senior Notes due 2033 by its financing subsidiary, American Water Capital Corp. (AWCC).

Key Transaction Details

• Issuer: American Water Capital Corp. (AWCC), a wholly owned finance subsidiary.
• Support Agreement: Fully supported by American Water Works Company, Inc. via the amended Support Agreement.
• Underwriting Agreement Date: September 14, 2026.
• Closing Date: September 16, 2026.
• Pricing & Yield: Sold to underwriters at 99.326% of face value.
• Net Proceeds: Approximately $496.6 million after deducting underwriting discounts and before offering expenses.
• Lead Underwriters: PNC Capital Markets LLC, Mizuho Securities USA LLC, RBC Capital Markets, LLC, and U.S. Bancorp Investments, Inc.

Use of Proceeds

1. Refinancing Debt: Repay at maturity $250.0 million aggregate principal amount of AWCC's outstanding 3.000% senior notes due December 1, 2026.
2. Utility Subsidiary Funding: Provide loans to American Water and its regulated water and wastewater utility subsidiaries.
3. Commercial Paper Reduction: Repay a portion of outstanding short-term commercial paper borrowings.
4. General Corporate Purposes: Fund working capital and ongoing operational requirements.

Strategic & Financial Impact

This debt issuance successfully refinances near-term maturing obligations while securing long-term capital for capital expenditures across the regulated utility segments. The offering lengthens debt maturity profiles at fixed market rates in line with current utility sector benchmarks.