DAX+0,49 % EUR/USD+0,18 % Gold+0,12 % Öl (Brent)+1,96 %

Aqua Announces Proposed Common Stock and Tangible Equity Unit Offerings

Nachrichtenquelle: Business Wire (engl.)
15.04.2019, 12:55  |  2084   |   |   

Aqua America Inc. (NYSE:WTR) today announced it has commenced concurrent public offerings of approximately $1 billion of its common stock and $725 million of its tangible equity units, with a stated amount of $50 per unit. The offerings are part of securing the permanent financing to close Aqua’s acquisition of Peoples Natural Gas, first announced in October 2018.

Aqua intends to grant the underwriters in the common stock offering a 30-day option to purchase up to an additional $150 million of its common stock. Aqua also intends to grant the underwriters in the tangible equity unit offering an option to purchase, within a 13-day period beginning on, and including, the initial issuance date for the tangible equity units, up to an additional $109 million tangible equity units.

The common stock offering and tangible equity unit offering are separate public offerings made by means of separate prospectus supplements and are not contingent on each other or upon the consummation of the previously announced pending acquisition of Peoples Natural Gas.

Each tangible equity unit will consist of a prepaid stock purchase contract and an amortizing note due April 30, 2022, each issued by Aqua. Unless earlier settled or redeemed, each stock purchase contract will automatically settle on April 30, 2022 (subject to postponement in limited circumstances) for shares of Aqua’s common stock. The amortizing notes will pay equal quarterly cash installments that will constitute a payment of interest and a partial repayment of principal. The amortizing notes will have a final installment payment date of April 30, 2022 and will be unsecured senior obligations of Aqua.

Aqua intends to use the net proceeds from these offerings, together with the net proceeds from future debt financings, which may include the issuance of debt securities and/or borrowings under its bridge facility, and proceeds from a private placement of common stock, to (1) fund the acquisition, (2) complete the redemption of approximately $314 million aggregate principal amount of certain of Aqua’s outstanding notes and (3) pay related costs and expenses.

If for any reason the acquisition is not consummated, Aqua intends to use the net proceeds from these offerings for general corporate purposes, which may include the redemption of certain of Aqua America’s outstanding notes or other securities issued in connection with the planned future debt financings, repurchases of Aqua’s common stock, debt repayment, capital expenditures and investments. For example, if for any reason the acquisition is not consummated, Aqua may redeem all, but not less than all, of the outstanding purchase contracts that are components of the tangible equity units, in which case, Aqua would pay a redemption price at that time in cash or shares of common stock in accordance with the terms of the purchase contracts. If Aqua elects to redeem the purchase contracts, it may be required by the holders thereof to repurchase the amortizing notes at the repurchase price set forth in the amortizing notes.

Seite 1 von 3
Aqua America

0 Kommentare

Schreibe Deinen Kommentar

Bitte melden Sie sich an, um zu kommentieren. Anmelden | Registrieren



Meistgelesene Nachrichten des Autors