American Water Works Company, the a U.S. water and wastewater utility company, announced that its financing subsidiary, American Water Capital, and its lenders have agreed to increase the commitments under its revolving credit facility. According to the company’s 8-K dated October 29, 2012, Wells Fargo Bank serves as administrative agent on the revolver, with JPMorgan Chase Bank as syndication agent and PNC Bank and RBS as co-documentation agents.

The commitments in the revolving credit facility have been increased from $1 billion to $1.25 billion under its original terms. In addition, $1.1 billion of this facility has been extended from its original termination date of October 2017 to October 2018. The increased and extended credit facility will be used for general corporate purposes. Other than the extension of the maturity date and the increased amount of the facility, the terms and conditions of the facility are unchanged.

The company also announced that it will increase its commercial paper program from $700 million to $1 billion. The revolving credit facility, along with the company’s commercial paper program and cash from operations, provide for the company’s near term financial liquidity.

“We are pleased to increase our financial flexibility during this constructive capital markets environment,” said Susan Story, senior vice president and CFO of American Water.

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company.