Connecticut Water Share Offering to Raise Funds to Help Cut Debt
Connecticut Water Service Inc. (CTWS), which completed the acquisition of a water company this week to expand in the U.S. Northeast, said the issuing of new shares to help pay debt will raise about $43.1 million.
That’s more than twice the price paid for the $19.8 million acquisition of Biddeford and Saco Water Co. in Maine. The Clinton, Connecticut-based water provider said proceeds from about 1.48 million shares priced at $29.25 each would pay down short-term borrowings and be used for corporate purposes.
The stock fell 7.5 percent to $29.29 yesterday, the most since August 2011, on more than three times the average 3-month daily volume. The water company’s shares have now risen 8 percent this year compared with a 13 percent gain by the 18- member Bloomberg World Water Index.
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