H2O America Announces Proposed Offering of Common Stock with a Forward Component

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H2O America, a national investor-owned network of local water and wastewater utilities, announced that it has commenced an underwritten public offering of $550 million in shares of its common stock. The company expects to issue and sell directly approximately $150 million in shares to the underwriters, while the forward purchasers or their affiliates expect to borrow from third parties and sell to the underwriters approximately $400 million in shares of common stock in connection with forward sale agreements.

Why it matters

The proposed offering will help H2O America finance the acquisition of Quadvest, a move that will expand the company's water and wastewater services across the country. The funds will also be used for general corporate purposes, including potential future acquisitions, capital expenditures, share repurchases, or debt repayment.

The details

H2O America plans to enter into forward sale agreements with JPMorgan Chase Bank and Wells Fargo Bank, where the company will agree to issue and sell the forward purchasers an aggregate of $400 million in shares of its common stock. The company intends to use the net proceeds from the offering and the forward sale agreements, along with the proceeds of certain debt financing, to finance the Quadvest Acquisition and pay related fees and expenses.

• The offering is expected to close on or around March 2, 2026.
• The forward sale agreements provide for settlement on a settlement date or dates to be specified at the company's discretion on or prior to March 2, 2028.

What’s next

If the Quadvest Acquisition does not close, H2O America plans to use the net proceeds from the offering for general corporate purposes, which may include acquisitions, capital expenditures, share repurchases, or debt repayment.