BRYN MAWR, Pa.--(BUSINESS WIRE)--
Aqua America, Inc. (NYSE: WTR) announced today that its Pennsylvania
subsidiary closed on $80 million of first mortgage bonds. The first
mortgage bonds were issued by Aqua Pennsylvania in three series at an
average rate of 3.81 percent: $40 million priced at a 3.79 percent
coupon and a 29-year maturity, $20 million priced at a 3.80 percent
coupon and a 30-year maturity, and $20 million priced at a 3.85 percent
coupon and a 35-year maturity. Proceeds from this transaction will be
used to refinance higher coupon first mortgage bonds and pay down its
revolving credit facility.
As of September 30, 2012, Aqua America's weighted average cost of
fixed-rate long-term debt was 5.2 percent, and the company had $111.6
million available on its credit lines. In September, Standard & Poor's
reiterated its A+ credit rating for Aqua Pennsylvania, Inc., Aqua
America's largest subsidiary. Of the 227 electric, gas and water
utilities rated by Standard & Poor's, only one has a higher rating than
Aqua Pennsylvania.
"We are investing at a time when we can take advantage of low-interest
rates, below 4 percent, to build the water and wastewater infrastructure
needed to help enhance public health and future economic growth for the
21st Century," said Aqua America Chairman Nicholas
DeBenedictis.
He added that Aqua America has lowered its weighted average cost of debt
continuously over the past decade to 5.2 percent as of September 30th,
and this transaction will lower its weighted average another 10 basis
points. This accomplishment translates into millions of dollars in
interest expense savings for its customers.
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.
WTRF
Aqua America, Inc.
Brian Dingerdissen
Director, Investor
Relations
610-645-1191
bjdingerdissen@aquaamerica.com
or
Donna
Alston
Director, Communications
610-645-1095
dpalston@aquaamerica.com
Source: Aqua America, Inc.
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