Company: AWK
Filing Date: 2025-12-29
Form Type: S-4/A
Source: 0001193125-25-332292
Chunk: 172

Company: American Water Works Company, Inc.
Filing Date: 2025-12-29
Form: S-4/A
Chunk 172
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 exchange fund.

After the merger is completed, the exchange agent will send to each Essential shareholder whose shares are represented by certificates a letter of transmittal
and instructions for use in surrendering shares of Essential common stock in exchange for (i) certificates representing whole shares of American Water common stock (or

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appropriate alternative arrangements made by American Water if uncertificated shares of American Water common stock will be issued), (ii) cash in lieu of fractional shares of American Water
common stock, and (iii) any dividends or distributions payable with respect to such Essential common stock. The exchange of any book-entry shares will be made in accordance with the exchange agent’s customary procedures with respect to
securities held in book-entry form.

For more information, see “The Merger Agreement—Conversion of Shares; Exchange of Certificates” beginning on page 121.

Treatment of Essential’s Existing Debt; Financing

There is no financing condition to the merger.

In connection
with the merger, the parties have agreed to cooperate in good faith to mutually determine and use commercially reasonable efforts to implement any necessary, appropriate, or desirable arrangements regarding each party’s and its
subsidiaries’ credit agreements, indentures, or other documents governing or relating to their respective indebtedness. These arrangements may include amendments, consents, redemption, payoff, new financing, or other actions with respect to
refinancing or retaining a party’s or its subsidiaries’ credit agreements or notes.

If Essential does not obtain an amendment, waiver, or
other modification to a specified credit agreement prior to the date that is 30 days prior to the anticipated closing date of the merger, Essential will use commercially reasonable efforts to repay in full and terminate such credit agreement on or
prior to the closing date of the merger.

Essential has also agreed to (i) use its commercially reasonable efforts to commence offers to prepay
(including change in control offers) all of the notes issued pursuant to that certain Note Purchase Agreement, dated as of November 3, 2016 (as amended, restated or otherwise modified from time to time), by and among Essential and the note
purchasers thereto, which is referred to as the Essential 2016 NPA, and cause its subsidiaries, and direct its and their respective non-legal representatives, to provide all cooperation reasonably requested by
American Water in connection with any such prepayment, or (ii) obtain a waiver of, or an amendment or modification to, the Essential 2016 NPA such that the