Aqua America’s Pennsylvania Subsidiary Raises $80 Million in First Mortgage Bonds at 3.81 Percent

  Aqua America’s Pennsylvania Subsidiary Raises $80 Million in First Mortgage
  Bonds at 3.81 Percent

Business Wire

BRYN MAWR, Pa. -- November 13, 2012

Aqua America, Inc. (NYSE: WTR) announced today that its Pennsylvania
subsidiary closed on $80 million of first mortgage bonds. The first mortgage
bonds were issued by Aqua Pennsylvania in three series at an average rate of
3.81 percent: $40 million priced at a 3.79 percent coupon and a 29-year
maturity, $20 million priced at a 3.80 percent coupon and a 30-year maturity,
and $20 million priced at a 3.85 percent coupon and a 35-year maturity.
Proceeds from this transaction will be used to refinance higher coupon first
mortgage bonds and pay down its revolving credit facility.

As of September 30, 2012, Aqua America’s weighted average cost of fixed-rate
long-term debt was 5.2 percent, and the company had $111.6 million available
on its credit lines. In September, Standard & Poor’s reiterated its A+ credit
rating for Aqua Pennsylvania, Inc., Aqua America’s largest subsidiary. Of the
227 electric, gas and water utilities rated by Standard & Poor’s, only one has
a higher rating than Aqua Pennsylvania.

“We are investing at a time when we can take advantage of low-interest rates,
below 4 percent, to build the water and wastewater infrastructure needed to
help enhance public health and future economic growth for the 21^st Century,”
said Aqua America Chairman Nicholas DeBenedictis.

He added that Aqua America has lowered its weighted average cost of debt
continuously over the past decade to 5.2 percent as of September 30^th, and
this transaction will lower its weighted average another 10 basis points. This
accomplishment translates into millions of dollars in interest expense savings
for its customers.

Aqua America is one of the largest U.S.-based, publicly-traded water utilities
and serves almost 3 million residents in Pennsylvania, Ohio, Illinois, Texas,
New Jersey, Indiana, Virginia, Florida, North Carolina, and Georgia. Aqua
America is listed on the New York Stock Exchange under the ticker symbol WTR.



Aqua America, Inc.
Brian Dingerdissen
Director, Investor Relations
Donna Alston
Director, Communications
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