Company: AWK
Filing Date: 2025-12-17
Form Type: S-4
Source: 0001193125-25-321389
Chunk: 136

Company: American Water Works Company, Inc.
Filing Date: 2025-12-17
Form: S-4
Chunk 136
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 values of American Water or American
Water common stock, or Essential or Essential common stock.

The type and amount of consideration payable in the merger was determined through
negotiations between American Water and Essential, rather than by any financial advisor, and was approved by the American Water board. The decision to enter into the merger agreement was that of the American Water board. As described above, BofA
Securities’ opinion and analyses were only one of many factors considered by the American Water board in its evaluation of the merger and should not be viewed as determinative of the views of the American Water board, American Water’s
management or any other party with respect to the merger or the exchange ratio.

American Water has agreed to pay BofA Securities for its services in
connection with the merger an aggregate fee of $45 million, $2.5 million of which was payable upon delivery of BofA Securities’ opinion and the remainder of which is payable contingent upon consummation of the merger. In addition,
American Water has agreed to reimburse certain of BofA Securities’ expenses arising, and to indemnify BofA Securities against certain liabilities that may arise, out of BofA Securities’ engagement.

BofA Securities and its affiliates comprise a full-service securities firm and commercial bank engaged in securities, commodities and derivatives trading,
foreign exchange and other brokerage activities, and principal investing as well as providing investment, corporate and private banking, asset and investment management, financing and financial advisory services and other commercial services and
products to a wide range of companies, governments and individuals. In the ordinary course of their businesses, BofA Securities and its affiliates may invest on a principal basis or on behalf of customers or manage funds that invest, make, or hold
long or short positions, finance positions, or trade or otherwise effect transactions in equity, debt, or other securities or financial instruments (including derivatives, bank loans, or other obligations) of American Water, Essential, and certain
of their respective affiliates.

BofA Securities and its affiliates in the past have provided, currently are providing, and in the future may provide,
investment banking, commercial banking, and other financial services to American Water and certain of its affiliates and have received or in the future may receive compensation for the rendering of these services, including (i) having acted or
acting as financial advisor to American Water in connection with a sale transaction, (ii) having acted or acting as a book-running manager, bookrunner, and/or underwriter for certain debt and equity