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
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.
Aqua America, Inc.
Source: Aqua America, Inc.
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