H2O America Announces Pricing of Offering of Equity Units
Key Highlights
- ➤$325.0 million equity-unit offering priced at $50 per unit
- ➤Net proceeds estimated at $315.3 million, or $362.5 million with over-allotment
- ➤Equity units carry 7.750% annual distributions through 2031 notes and purchase contracts
- ➤Holders must purchase variable shares by November 1, 2029, with 0.7265-0.8537 settlement range
- ➤Company may use proceeds for acquisitions, capital expenditures or debt repayment
SAN JOSE, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) (the “Company”) announced today that it has priced its previously announced underwritten public offering of 6.5 million equity units (the “Offering”). Each equity unit will be issued in a stated amount of $50 ($325.0 million aggregate stated amount) and will initially be in the form of a corporate unit consisting of a contract to purchase the Company’s common stock in the future (the “purchase contract”) and a 1/20 undivided beneficial ownership interest in $1,000 principal amount of the Company’s 5.300% Remarketable Senior Notes due 2031. The Remarketable Senior Notes are subject to remarketing, subject to certain conditions and during certain periods. The Offering is expected to close on November 3, 2026, subject to customary closing conditions.
In connection with the Offering, the Company has granted the underwriters an option to purchase up to an additional 975,000 equity units ($48.75 million additional aggregate stated amount), solely for the purpose of covering over-allotments, within the 13-day period beginning on the day the Company first issues the corporate units.
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