September 8, 2009 (FinancialWire) — American Water Works Co., Inc. (NYSE: AWK) said that its financing subsidiary has closed an offering of $26 million in tax-exempt water facility revenue bonds issued by Owen County in Kentucky. Morgan Stanley (NYSE: MS) is the sole underwriter for the offering.

The bonds have a coupon of 5.625% with a 30-year maturity and a 10-year call option.

American Water plans to use the proceeds from the bond offering to repay short-term debt related to the construction of a water treatment and transmission facility located in Owen County, Kentucky, as well as to pay a portion of the remaining costs of acquisition, construction, installation and equipping of the water treatment and transmission facility as the construction proceeds to completion.

The project is being built to ensure a long-term sustainable water supply for Central Kentucky.

Vorhees, New Jersey-based American Water is a water and wastewater utility company. The company provides drinking water, wastewater and other related services to around 15 million people in 32 states and Ontario, Canada.

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