Aqua America, Inc. (NYSE:WTR) announced today that its largest
subsidiary—Aqua Pennsylvania, Inc. (Aqua)—has been approved for a $1.23
million low interest loan from the Pennsylvania Infrastructure
Investment Authority (PENNVEST) to make water quality improvements at
existing well stations in its Country Club Gardens, Maple Hills and
Springhouse Farms water systems in Lehigh County.
Interest rates on the 20-year loan are 1.274 percent for the first 5
years and 2.547 percent for the remaining term. Aqua America Chairman
and CEO Nicholas DeBenedictis said, "Aqua Pennsylvania has among the
lowest cost of debt in the private water utility industry, primarily as
a result of our excellent credit rating and our aggressive strategy to
seek out low-cost financing.”
Aqua Pennsylvania has an A+ S&P corporate credit rating, which improves
its ability to economically expand its infrastructure rebuilding
program. In 2009, Aqua expects to spend approximately $236 million in
Pennsylvania on infrastructure improvements, most of which will be
funded by internally generated cash.
When Aqua America announced an agreement to issue $58 million in
tax-exempt First Mortgage Bonds earlier this month, DeBenedictis said,
"The strong S&P credit rating allows the company to continue to access
the capital markets at reasonable rates and enables Aqua to contribute
to the reduction of the overall embedded cost of debt for Aqua America
companies, which is now at 5.6 percent. This has allowed us to maintain
our business model and to finance infrastructure projects that will
improve water quality and reliability, and benefit the local economy.”
The Country Club Garden project includes the replacement of an existing
well station and water storage tank; the installation of a new water
line to connect the well station and storage tank; the installation of
an emergency generator; and demolition of existing structures at two
other locations, all in South Whitehall Township.
The Maple Hills project includes the replacement of an existing well
station and storage tank and the installation of an emergency generator
in Lower Macungie Township.
The Springhouse Farms project includes the replacement of a well
station, the installation of an emergency generator, and the demolition
of existing in South Whitehall Township.
Aqua America, Inc. is a publicly traded water and wastewater utility
holding company with operating subsidiaries serving approximately three
million people in Pennsylvania, Ohio, North Carolina, Illinois, Texas,
New Jersey, New York, Indiana, Florida, Virginia, Maine, Missouri and
South Carolina. Aqua America is listed on the New York Stock Exchange
under the ticker symbol WTR.
This release contains certain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including, among others, the Company’s ability to continue its
infrastructure improvement program and capital plans, expected interest
rate savings and their effect on rate payers, and the Company’s ability
to access the capital markets. There are important factors that could
cause the actual results to differ materially from those expressed or
implied by such forward-looking statements including among others, the
successful completion of the company’s low-interest financing program;
the company’s ability to realize the benefits from its low-interest
financing; the effect of the low-interest financing on the company’s
interest expense; the company’s ability to successfully complete the
construction projects; general economic business conditions; the success
of certain cost containment initiatives; changes in regulations or
regulatory treatment; availability and cost of capital; and the success
of growth initiatives; and other factors discussed in our Annual Report
or Form 10-K for the fiscal year ended December 31, 2007, which is on
file with the SEC. We undertake no obligation to publicly update or
revise any forward-looking statement.
WTRF
