SAN JOSE, CA--(Marketwire - October 27, 2009) - California Water Service Group (
NYSE:
CWT)
today announced that it has expanded its unsecured credit facilities to a
$300 million, three-year, syndicated revolving line of credit to be used
for working capital purposes, including the short-term financing of capital
projects.
The base loan rate may vary from prime plus 50 basis points to prime plus
125 basis points depending on the Company's total capitalization ratio.
Likewise, the unused commitment fee may vary from 25 basis points to 35
basis points based on the same ratio. Currently, the Company expects its
pricing to be prime plus 75 basis points with a 25 basis point unused
commitment fee based on its current capitalization. California Water
Service Group and subsidiaries which it designates may borrow under the
facilities. Borrowings by California Water Service Company will be repaid
within 12 months unless otherwise authorized by the California Public
Utilities Commission. Bank of America was selected as lead bank and
administrative agent with CoBank and Bank of China as co-syndication
agents.
"We were very pleased with the level of commitment to Cal Water from a
number of banks," said Peter C. Nelson, President and Chief Executive
Officer. "Given our strong balance sheet and recently issued first
mortgage bonds that received an AA- rating from Standard & Poor's, we
believe this was an opportune time to expand our credit facilities to meet
the needs of our operations," Nelson said.
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. Together these companies provide regulated and
non-regulated water service to nearly 2 million people in California,
Washington, New Mexico, and Hawaii. The Company's common stock trades on
the New York Stock Exchange under the symbol "CWT."
This news release contains forward-looking statements within the meaning
established by the Private Securities Litigation Reform Act of 1995
("Act"). The forward-looking statements are intended to qualify under
provisions of the federal securities laws for "safe harbor" treatment
established by the Act. Forward-looking statements are based on currently
available information, expectations, estimates, assumptions and
projections, and management's judgment about the Company, the water utility
industry and general economic conditions. Such words as expects, intends,
plans, believes, estimates, assumes, anticipates, projects, predicts,
forecasts or variations of such words or similar expressions are intended
to identify forward-looking statements. The forward-looking statements are
not guarantees of future performance. They are subject to uncertainty and
changes in circumstances. Actual results may vary materially from what is
contained in a forward-looking statement. Factors that may cause a result
different than expected or anticipated include, but are not limited to:
governmental and regulatory commissions' decisions; changes in regulatory
commissions' policies and procedures; the timeliness of regulatory
commissions' actions concerning rate relief; new legislation; electric
power interruptions; increases in suppliers' prices and the availability of
supplies including water and power; fluctuations in interest rates; changes
in environmental compliance and water quality requirements; acquisitions
and our ability to successfully integrate acquired companies; the ability
to successfully implement business plans; changes in customer water use
patterns; the impact of weather on water sales and operating results;
access to sufficient capital on satisfactory terms; civil disturbances or
terrorist threats or acts, or apprehension about the possible future
occurrences of acts of this type; the involvement of the United States in
war or other hostilities; restrictive covenants in or changes to the credit
ratings on our current or future debt that could increase our financing
costs or affect our ability to borrow, make payments on debt or pay
dividends; and, other risks and unforeseen events. When considering
forward-looking statements, you should keep in mind the cautionary
statements included in this paragraph, as well as the annual 10-K,
Quarterly 10-Q, and other reports filed from time-to-time with the
Securities and Exchange Commission (SEC). The Company assumes no
obligation to provide public updates of forward-looking statements.
Additional information is available at our Web site at
www.calwatergroup.com.
1720 North First Street
San Jose, CA 95112-4598
Contact Information: Contact:
Marty Kropelnicki
(408) 367-8200 (analysts)
Shannon Dean
(310) 257-1435 (media)