H2O America Announces Pricing of Offering of Equity Units
H2O America priced a public offering of 6.5 million equity units at a $50 stated amount, for $325 million aggregate, with a 13-day over-allotment option on 975,000 more units. Each unit bundles a stock purchase contract with a 1/20 interest in 5.300% Remarketable Senior Notes due 2031, producing total annual distributions of 7.750%; holders must buy a variable number of shares by November 1, 2029 at a $58.5686 reference price, with settlement rates implying a 17.5% premium threshold.
Key figures
- Deal Value Usd
- 325000000
- Offering Price
- $50 stated amount per equity unit
- Shares Offered
- 6500000
- Coupon
- 7.750% total annual distributions (5.300% note interest + 2.450% contract adjustment payments)
- Net proceeds
- $315.3 million ($362.5 million if over-allotment exercised)
- Notes coupon
- 5.300% Remarketable Senior Notes due 2031
- Reference price
- 58.5686
- Max settlement rate
- 0.8537
- Min settlement rate
- 0.7265
- Over allotment units
- 975000
- Over allotment value
- $48.75 million
- Premium over reference
- 17.5%
- Purchase contract deadline
- November 1, 2029
- Threshold appreciation price
- 68.8231
AI analysis
Red flags2 · Pro
The rest of the AI analysis, red flags and sentiment are part of Signal8 Pro.
AI-generated analysis of a public disclosure. Not investment advice; verify against the original document.