July 13, 2012

CT Water seeks $50M from equity sale

Clinton water utility Connecticut Water Services Inc. plans to issue stock to raise $50 million to bring its ratio of debt to equity back into favorable balance, a regulatory filing shows.

According to Connecticut Water's shelf filing with the Securities and Exchange Commission, it seeks to sell 1.7 million shares for a maximum $29.34 each, grossing $49,878,000. The expected price is based on the utility's average trading price on July 2, the filing said.

Connecticut Water spokesman Daniel Meaney said proceeds will be used to its debt to equity ratio more in line with its 50/50 target.

The utility used interim financing for its $36 million buyout earlier this year of the Maine division of Aqua America Inc., skewing its debt-equity ratio, Meaney said.

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