Company: AWK
Filing Date: 2025-08-08
Form Type: 8-K
Source: 0001193125-25-176567
Chunk: 0

Company: American Water Works Company, Inc.
Filing Date: 2025-08-08
Form: 8-K
Item: Item 1.01
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Item 1.01.      Entry into a Material Definitive Agreement.  

On August 7, 2025, American Water Works Company, Inc. (“ American Water”) entered into an additional forward sale agreement (each an “ Additional Forward Sale Agreement,” and, collectively, the “ Additional Forward Sale Agreements”) with each of Wells Fargo Bank, National Association, JPMorgan Chase Bank, National Association, and Mizuho Markets Americas LLC (with Mizuho Securities USA LLC acting as agent) (each, a “ Forward Purchaser”), relating to an aggregate of 1,056,338 shares (the “ Borrowed Optional Shares”) of American Water’s common stock, par value $0.01 per share (“ Common Stock”).

On August 7, 2025, the Forward Sellers (as defined below) borrowed from third parties the Borrowed Optional Shares and the Forward Sellers sold the Borrowed Optional Shares in connection with the Additional Forward Sale Agreements to the underwriters named in the Equity Underwriting Agreement referred to under Item 8.01 below, for whom Wells Fargo Securities, LLC, J. P. Morgan Securities LLC and Mizuho Securities USA LLC, are acting as representatives.

The Additional Forward Sale Agreements provide for settlement on a settlement date or dates to be specified at American Water’s discretion on or prior to December 31, 2026. On a settlement date or dates, if American Water elects to physically settle one or more Additional Forward Sale Agreements, American Water will issue shares of Common Stock to the relevant Forward Purchaser at the then-applicable forward sale price. The forward sale price under the Additional Forward Sale Agreements is initially $139.657 per share, which is equal to the price to public per share less an underwriting discount reflected in the Equity Underwriting Agreement. Each Additional Forward Sale Agreement provides that the initial forward sale price will be subject to adjustment based on a floating interest rate factor equal to the overnight bank funding rate less a spread, and will be subject to decrease on each of certain dates specified in such Additional Forward Sale Agreement by amounts related to expected dividends on shares of Common Stock during the term of such Additional Forward Sale Agreement. If the overnight bank funding rate is less than the spread on any day, the interest rate factor will result in a reduction of the forward sale price for such day.

Each Additional Forward Sale Agreement will be physically settled unless American Water elects to settle such Additional Forward Sale Agreement in cash or to net share settle such Additional Forward Sale Agreement (