American Water amends Secured Seller Note: principal up $75M to $795M, rate 10%, removes put option

American Water Works Company, Inc.

Principal increased from $720M to $795M to satisfy $75M contingent payment from HOS sale.
Interest rate raised from 7.00% to 10.00% per annum; maturity unchanged at Dec 9, 2026.
Lender Put Option eliminated; borrower gains certainty of financing.
If borrower acquisition not completed by May 2, 2024, Apax contributes $50M equity and borrower repays $75M additional principal.
Amendments enhance credit protection for American Water while supporting borrower's planned acquisition.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

American Water Works Company, Inc. amended Secured Seller Note Agreement with Lakehouse Buyer Inc. valued at $795 million (effective 2024-02-02).

Action: amendment
Agreement: credit facility
Counterparty: Lakehouse Buyer Inc.
Value: $795 million
Effective: 2024-02-02

Exact text from the filing

On February 2, 2024, American Water Enterprises, LLC, a wholly owned subsidiary of American Water Works Company, Inc. (the “Company”) and as lender (“Lender”) under that certain Secured Seller Note Agreement, dated December 9, 2021, and related secured promissory note (collectively, the “Secured Seller Note”), issued by Lakehouse Buyer Inc., as borrower (the “Borrower”) and an indirect, wholly owned subsidiary of funds advised by Apax Partners LLP (“Apax”), together with the other parties to the Secured Seller Note, have amended certain of the terms and conditions of the Secured Seller Note and related transaction documentation (as amended, the “Amended Secured Seller Note”).

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American Water Works Company, Inc. filing history →

Source: SEC EDGAR

accession 0001410636-24-000043

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