Investment Banking - Aqua America, Inc.
Transactions | Infrastructure/Environmental/Water
Client: Aqua America, Inc.
Transaction Type: Common Stock Offering
- Aqua America, Inc. (NYSE:WTR) (the “Company”) through its subsidiaries, operates regulated utilities that provide water or wastewater services to more than 3 million people in 8 states. Those services are offered through operating and maintenance contracts with municipal authorities and other parties. The Company also provides water and wastewater line repair services, and protection solutions to households; and non-utility raw water supply services for firms in the natural gas drilling industry. Founded in 1968, the Company is headquartered in Bryn Mawr, PA.
- Prior to the acquisition, WTR generated $838 million in revenue and $192 million in net income for the last twelve months ended March 31, 2019. The Company had a capitalization structure of 56.7% / 43.3% of debt / equity.
- In October 2018, the Company announced it will acquire Peoples Natural Gas in an all-cash transaction that reflects an enterprise value of $4.275 billion, which includes the assumption of approximately $1.3 billion of debt. The combined enterprise will be among the largest publicly traded water utilities and natural gas local distribution companies in the U.S.
- The public offering (the “Offering”) closed on April 23, 2019. In total, the Company issued 37,370,017 shares of its common stock, par value $0.50 per share, at a price to the public of $34.62 per share and generated gross proceeds of $1.29 billion (including the shoe).
- The Company intends to use the net proceeds from the Offering to fund a portion of the cash consideration for the acquisition of Peoples Natural Gas Co. and to refinance existing debt.
- Boenning served as a co-manager in the Offering.