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Aqua America Subsidiaries Refinance Debt Collectively with Interest Savings of More Than $300,000 Annually

Company's interest rate on $1.6 billion debt now less than 5 percent

BRYN MAWR, Pa.--(BUSINESS WIRE)-- Aqua America, Inc. (NYSE: WTR) announced today that its Illinois and New Jersey subsidiaries collectively have refinanced more than $30.1 million of debt estimated to save customers approximately $315,000 in total annual interest expense.

Aqua Illinois refinanced $23.1 million in existing 5.12 percent debt with debt at a weighted average cost of 3.96 percent, which is expected to save rate payers more than $265,000 in interest costs annually.

Aqua America's New Jersey subsidiary also refinanced $7 million in existing 5.08 percent debt with debt at a weighted average cost of 4.40 percent, generating annual interest savings for customers of almost $50,000.

As of February 2014, Aqua America's weighted average cost of fixed-rate long term debt was just under 5.00 percent, and the company had $243 million available on its credit lines. In September, Standard & Poor's reiterated its A+ credit rating for Aqua Pennsylvania. Of the 217 electric, gas, and water utilities rated by Standard & Poor's, only one has a higher rating than Aqua Pennsylvania.

"We are proud that our sound financial standing allows us to take advantage of low interest rates that ultimately benefit our customers," said Aqua America Chairman Nicholas DeBenedictis. "We are proud to have reached our goal of reducing our weighted average cost of fixed-rate long-term debt to below 5 percent. The success of our continuing efforts to be eligible for low-interest loans has translated into millions of dollars in interest expense savings for our customers over the years."

Aqua America is one of the largest U.S.-based, publicly traded water utilities and serves nearly 3 million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas, New Jersey, Indiana and Virginia. Aqua America is listed on the New York Stock Exchange under the ticker symbol WTR. Visit AquaAmerica.com for more information.

This release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including, among others: the company's continued ability to have access to low interest loans. 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; housing and customer growth trends; unfavorable weather conditions; the success of certain cost containment initiatives; The extent to which rate increase requests are granted and the timing of rate awards; changes in regulations or regulatory treatment; availability and access to capital; the cost of capital; disruptions in the credit markets; the success of growth initiatives; and other factors discussed in our Annual Report on Form 10-K for the period ending December 31, 2013, which is on file with the Securities and Exchange Commission (SEC). For more information regarding risks and uncertainties associated with Aqua America's business, please refer to Aqua America's annual, quarterly and other SEC filings. Aqua America is not under any obligation--expressly disclaims any such obligation--to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

WTRF

Aqua America, Inc.
Donna Alston
O: 610-645-1095
M: 484-368-4720
DPAlston@AquaAmerica.com
or
Brian Dingerdissen
O: 610-645-1191
BJDingerdissen@AquaAmerica.com

Source: Aqua America, Inc.

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