SAN JOSE, Calif., Oct. 2, 2002 -- California Water Service Group announced a program to refinance a portion of its outstanding first mortgage bonds, which allows the company to take advantage of the current lower interest rates. It is estimated that the total program, which will be completed in two phases, will save the company in excess of $1.4 million in annual interest costs.
In the first phase of the program, the company agreed to refinance $35 million of outstanding first mortgage bonds with lower interest cost senior notes. The refinancing is expected to be completed during November and will save the company $1 million in annual interest costs.
Additionally, the company agreed to refinance an additional $19 million of outstanding first mortgage bonds with lower interest senior notes. The second phase of the refinancing program is expected to be completed in May 2003. It will save approximately $450,000 in annual interest costs.
The company currently has $121 million of first mortgage bonds outstanding. If both phases of the bond refinancing program are successfully completed, there will be $65 million outstanding.
Two other series of outstanding first mortgage bonds will be considered for refinancing late in 2003. Additional refinancing will be dependent upon market conditions at the time.
California Water Service Group is the parent company of California Water Service Company, Washington Water Service Company, New Mexico Water Service Company, and CWS Utility Services. The subsidiaries provide regulated and non-regulated water service to over 1.7 million people in 98 communities. The company's common stock trades on the New York Stock Exchange under the symbol "CWT."
Additional information is available at the company's web site at www.calwater.com.
