BRYN MAWR, Pa.--(BUSINESS WIRE)--Aqua America, Inc. (NYSE: WTR) announced that yesterday its Pennsylvania subsidiary closed on $75 million of first mortgage bonds. The first mortgage bonds were issued by Aqua Pennsylvania in three series at an average rate of 4.39 percent: $25 million priced at a 3.94 percent coupon and an 18-year maturity, $25 million priced at a 4.61 percent coupon and a 32-year maturity, and $25 million priced at a 4.62 percent coupon and a 33-year maturity. Proceeds from this transaction will be used to refinance higher coupon bonds, pay down short-term debt, and pay the cost of issuance.
As of September 30, 2013, Aqua America’s weighted average cost of fixed-rate long-term debt was 5.04 percent, and the company had $170 million available on its credit lines. In September, Standard & Poor’s reiterated its A+ credit rating for Aqua Pennsylvania. Of the 227 electric, gas, and water utilities rated by Standard & Poor’s, only one has a higher rating than Aqua Pennsylvania.
“We continue to take advantage of low interest rates and expect to reduce our weighted average cost of fixed-rate long-term debt to be below 5 percent at year end. This translates into millions of dollars in interest expense savings for our customers. The company is also now generating cash in excess of its capital investment needs, which will lessen the need for future borrowings,” said Aqua America Chairman Nicholas DeBenedictis.
Aqua America is one of the largest U.S.-based, publicly-traded water utilities and serves almost 3 million residents in Pennsylvania, Ohio, Illinois, Texas, New Jersey, Indiana, Virginia, Florida, North Carolina, and Georgia. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR.
This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others: the projected weighted average cost of fixed-rate long-term debt at the end of 2013. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions; changes in regulations or regulatory treatment; availability and the cost of capital; disruptions in the credit markets; the anticipated need for future borrowings; and other factors discussed in our Annual Report on Form 10-K for the period ending December 31, 2012, which is on file with the SEC. We undertake no obligation to publicly update or revise any forward-looking statement.
WTRF
