SAN JOSE, CA, March 12, 2015 -- California Water Service Group (CWSG) recently announced that it has entered into unsecured revolving credit facilities for the organization and its subsidiaries, totaling $450 million for a term of five years.
Of the total, $300 million is available to California Water Service Company (Cal Water), a wholly-owned subsidiary of CWSG, and $150 million is available to CWSG and other subsidiaries. Additionally, the credit facilities may each be expanded by up to $50 million, or $100 million total, subject to certain conditions. The proceeds may be used for working capital purposes, including short-term financing of capital projects.
The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on CWSG's total capitalization ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points, depending on the same ratio. CWSG expects its pricing to be LIBOR plus 80 basis points, with a 9-basis-point unused commitment fee, depending on its current capitalization.
Bank of America Merrill Lynch was selected as Lead Arranger and Administrative Agent, with CoBank and US Bank as Co-Syndication Agents and Bank of China as Documentation Agent. "Given our strong credit rating from Standard & Poor's and with the strength of our balance sheet, we believed the time was right to replace the existing credit agreement with a new agreement that would extend our terms for an additional five years and increase the size of the facilities," said CWSG President and CEO Martin A. Kropelnicki.
See also:
"Cal Water signs agreement to provide recycled water to new Apple campus"
"Cal Water awarded grants for chromium-6 research, treatment in Willows District"
About California Water Service Group
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, Hawaii Water Service Company, Inc., CWS Utility Services, and HWS Utility Services, LLC. Together, these companies provide regulated and non-regulated water service to approximately 2 million people in more than 100 California, Washington, New Mexico, and Hawaii communities. For more information, visit www.calwatergroup.com.
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