H2O America Announces Proposed Offering of Equity Units
Key Highlights
- ➤H2O America launched a $325 million underwritten offering of 6.5 million equity units
- ➤Units include future stock purchase contracts and 1/20 interests in 2031 senior notes
- ➤Underwriters may buy 975,000 additional units, worth $48.75 million, for over-allotments
- ➤Proceeds may fund acquisitions, capital expenditures, debt repayment, and 2029 debt refinancing
- ➤Common stock is expected to be issued upon contract settlement around November 1, 2029
SAN JOSE, Calif., Oct. 29, 2026 (GLOBE NEWSWIRE) -- H2O America (NASDAQ: HTO) (the “Company”) announced today that it has commenced an underwritten public offering of 6.5 million equity units (the “Offering”), subject to market and other conditions. Each equity unit will be issued in a stated amount of $50 ($325 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 remarketable senior notes due 2031. Pursuant to the terms of the equity units, we expect to issue shares of the Company’s common stock to holders on or about November 1, 2029. Before the issuance of the Company’s common stock upon settlement of the purchase contracts, the purchase contracts will be reflected in the Company’s diluted earnings per share calculations using the treasury stock method.
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