Aqua America Inc. subsidiary Aqua Pennsylvania Inc. has closed an agreement to issue $75 million in tax-exempt first-mortgage bonds.
The bonds were issued in two series: $13 million priced at a 4.75% coupon rate with a yield of 4.9% and $62 million priced at a 5% coupon rate with a yield of 4.875%. Both series mature in 2040, with a 10-year call at par provision. Standard and Poor's rated the bonds at AA- with a 1+ recovery rating.
Aqua received approval from the Pennsylvania Economic Development Financing Authority for the issuance in early October, and the company closed the transaction on Nov. 17.
The bonds were sold by an underwriting team of Jefferies & Co., PNC Capital Markets, Janney Montgomery Scott, Hilliard Lyons and Boenning & Scattergood.
SOURCE: Aqua America Inc.