H2O America Announces Pricing of Offering of Common Stock with Forward Component

Core Viewpoint - H2O America has announced a public offering of 11,484,824 shares of common stock at a price of $53.00 per share, aiming to raise approximately $588.9 million, which may increase to $677.2 million if the underwriters' option is fully exercised [1][3]. Group 1: Offering Details - The offering reflects an increase of approximately $58.7 million over the previously announced offering size [1]. - The company will sell 3,937,654 shares directly to underwriters, while 7,547,170 shares will be borrowed and sold by forward purchasers [1][2]. - The underwriters have a 30-day option to purchase an additional 1,722,723 shares on the same terms [1]. Group 2: Financial Proceeds and Use - The estimated net proceeds from the offering are approximately $588.9 million, which may rise to $677.2 million if the underwriters' option is exercised in full [3]. - The proceeds will be used to finance the Quadvest Acquisition, pay related fees and expenses, and for general corporate purposes, including potential acquisitions, capital expenditures, share repurchases, or debt repayment [3]. Group 3: Forward Sale Agreements - The company has entered into forward sale agreements with JPMorgan Chase and Wells Fargo, agreeing to sell 7,547,170 shares at an initial forward price equal to the offering price [2]. - Settlement dates for the forward sale agreements will be specified at the company's discretion on or before March 2, 2028 [2]. Group 4: Company Overview - H2O America is a national investor-owned network of local water and wastewater utilities, serving over 1.6 million people across the country [6][9]. - The company focuses on delivering clean, high-quality water and investing in critical infrastructure to ensure sustainable water supply [8].