California Water Service gets $450 million of five-year revolvers

By Angela McDaniels

Tacoma, Wash., March 10 – California Water Service Group entered into five-year revolving credit facilities for the company and its subsidiaries totaling $450 million, according to a company news release.

Of the total, $300 million is available to subsidiary California Water Service Co. and $150 million is available to the parent company and its subsidiaries other than California Water Service Co.

The credit facilities may each be expanded by up to $50 million, or $100 million total, subject to certain conditions.

The interest rate is Libor plus 72.5 basis points to 95 bps, depending on the group's total capitalization ratio. The unused commitment fee varies from 8 bps to 12.5 bps, based on the same ratio. The company expects its pricing to be Libor plus 80 bps with a 9 bps unused commitment fee based on its current capitalization.

The proceeds from the credit facilities may be used for working capital purposes, including short-term financing of capital projects.

Bank of America Merrill Lynch was selected as lead arranger and administrative agent. CoBank and US Bank are co-syndication agents. Bank of China is documentation agent.

“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," Martin A. Kropelnicki, president and chief executive officer, said in the news release.

San Jose, Calif.-based California Water Service Group provides regulated and non-regulated water service through its subsidiaries.

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