American Water of Voorhees said today that it will offer $300 million in common stock and that a subsidiary of its German parent company intends to sell and additional $300 million in American Water stock.
American Water said it will use proceeds from the new offering to repay debt. The German parent, utility company RWE AG, will receive the proceeds from the subsidiary's sale, American Water said in a statement.
American Water employs 7,000 and provides drinking water, wastewater and other related services to 15 million people in 32 states and Ontario, Canada.
Its shares were down 82 cents, to $21.00 in midday trading on the New York Stock Exchange.