American States Water and subsidiary ink five-year credit agreements

By Mary-Katherine Stinson

Lexington, Ky., July 5 – American States Water Co. and its subsidiary Golden State Water Co. each entered into new five-year syndicated credit agreements on June 28, according to an 8-K filing with the Securities and Exchange Commission.

American States’ agreement provides for a $150 million revolving credit facility, which may be expanded by an additional $75 million. The agreement is intended to support American States’ parent and its contracted services subsidiary.

There is a $10 million letter-of-credit sublimit.

American States and subsidiaries, excluding Bear Valley Electric Service, Inc., may not have a consolidated total capitalization ratio greater than 0.65x at the end of any quarter.

Golden State’s separate agreement provides a $200 million revolving credit facility to support its operations and capital expenditures. The total borrowing capacity may be expanded up to an additional $75 million.

There is a $20 million letter-of-credit sublimit.

For both agreements, borrowings bear interest at SOFR based on a five-tiered pricing grid with margins ranging from 75 to 100 basis points based on the company’s credit rating. The commitment fee ranges from 6 to 17.5 bps also based the company’s credit rating.

The initial rate, through Dec. 31, will be 100 bps with a commitment fee of 10 bps.

Wells Fargo Bank, NA is the administrative agent, swingline lender and issuing bank and, along with Bank of China, Los Angeles branch, is the joint lead arranger and bookrunner for both agreements.

Bank of China, Los Angeles branch, is the syndication agent for both agreements.

For Golden State’s agreement, Cobank, ACB joins as a joint lead arranger and bookrunner and is the documentation agent.

The new facilities replace American States’ previous credit agreement dated June 3, 2005.

American States Water is a San Dimas, Calif.-based holding company for regulated utilities providing water, wastewater and energy services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.