AWK · American Water Works Company, Inc.

American Water Capital Corp. (AWCC), the finance subsidiary of American Water Works Company, Inc., completed the issuance of $700 million in aggregate principal amount of 5.200% Senior Notes due 2036. The offering, which closed on April 1, 2026, was conducted pursuant to an underwriting agreement dated March 30, 2026, with a syndicate of underwriters including Wells Fargo Securities, PNC Capital Markets, RBC Capital Markets, and U.S. Bancorp Investments. The Notes were issued under an existing Indenture dated December 4, 2009, with Computershare Trust Company, N.A. acting as trustee.

The Notes benefit from a Support Agreement provided by the parent company, American Water Works Company, Inc., originally dated June 22, 2000. This agreement ensures that the parent will provide funds to AWCC if it is unable to make timely payments on the debt. The Notes are redeemable at the company's option, with specific redemption provisions outlined in the Officers' Certificate, including a 'make-whole' call provision prior to the Par Call Date of January 1, 2036.

AWCC received net proceeds of approximately $694.9 million after underwriting discounts. The company intends to deploy these funds primarily to support the Regulated Businesses segment through intercompany loans, repay outstanding commercial paper obligations, and for general corporate purposes. This financing action represents a significant capital raise for the utility, optimizing its debt structure and funding core regulated operations.