Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 120

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 120
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-pension benefit contributions and (viii) less 
 change in working capital & other. The amount indicated for 2H2025E represents unlevered free cash flow for the six months ending December 31, 2025, as American Water did not prepare unlevered free cash flow projections for the full year        
 2025E since only the six-month 2025 period was relevant for the discounted cash flow analysis, and does not include $795 million of proceeds to be received from the amended secured seller note related to the sale of American Water’s former      
 Homeowner Services Group business, which proceeds were reflected as part of the assumed capital structure of American Water.                                                                                                                         |     |                          |      |   |     |       |        |   |     |       |        |   |     |       |        |   |     |       |      |   |     |       |      |   |

79

Opinion of American Water’s Financial Advisor American Water retained BofA Securities to act as a financial advisor to American Water in connection with the merger. BofA Securities is an internationally recognized investment banking firm which is regularly engaged in the valuation of businesses and securities in connection with mergers and acquisitions, negotiated underwritings, secondary distributions of listed and unlisted securities, private placements and valuations for corporate and other purposes. American Water selected BofA Securities to act as a financial advisor to American Water in connection with the merger on the basis of BofA Securities’ experience in transactions similar to the merger, its reputation in the investment community and its familiarity with American Water and its business. On October 24, 2025, at a meeting of the American Water board held to evaluate the merger, representatives of BofA Securities delivered to the American Water board the oral opinion of BofA Securities, which was confirmed by delivery of a written opinion, dated October 24, 2025, to the effect that, as of the date of such opinion and based on and subject to the factors and assumptions set forth in the written opinion, the exchange ratio provided for in the merger was fair, from a financial point of view, to American Water. The full text of BofA Securities’ written opinion to the American Water board, which describes, among other things, the assumptions made, procedures followed, factors considered and limitations on the review undertaken, is attached as Annex B to this joint proxy statement/prospectus and is incorporated by reference herein in its entirety. The following summary of B