Investment Banking - Essential Utilities, Inc.

Transactions | Infrastructure/Environmental/Water

Client: Essential Utilities, Inc.
Industry: Infrastructure/Environmental/Water
Transaction Type: Senior Notes Offering
Role: Co-Manager

Boenning Served as Co-Manager for Essential Utilities, Inc. Senior Notes Offering

  • Essential Utilities, Inc., formerly known as Aqua America, Inc. (NYSE: WTRG) (the “Company”), is a Pennsylvania corporation and the holding company for regulated utilities providing water, wastewater and natural gas distribution services to an estimated 5 million people in 10 states. The Company’s largest operating subsidiary is Aqua Pennsylvania, Inc., which accounted for approximately 54% of its operating revenue as well as and approximately 72% of its regulated water and wastewater segment’s income as of December 31, 2019. Founded in 1968, the Company is headquartered in Bryn Mawr, PA.
  • On March 16, 2020, the Company completed the acquisition of Peoples Natural Gas Co. (“Peoples”) in an all-cash transaction for approximately $4.275 billion, which included the assumption of approximately $1.1 billion of debt. The combined enterprise is among the largest publicly traded water utilities and natural gas local distribution companies in the U.S.
  • On April 15, 2020, the Company announced the completion of two underwritten registered public offerings (the “Offering”): $500 million of 2.704% Senior Notes due 2030 and $600 million of 3.351% Senior Notes due 2050. The Offering is expected to receive an investment grade rating of Baa2 and A- from Moody’s / S&P, respectively.
  • The Company intends to use the net proceeds from the Offering to repay in full borrowings under two separate term loan facilities that were used to fund the acquisition of Peoples and to repay borrowings under a revolving credit facility.
  • Boenning served as Co-Manager in the Offering.