Issuer:
|
California Water Service Company (the Company) | |
Issue Format:
|
SEC Registered | |
Note Type
|
First Mortgage Bonds | |
Guarantee:
|
Fully and unconditionally guaranteed by California Water Service Group | |
Total Principal Amount:
|
$100,000,000 | |
Pricing Date:
|
April 13, 2009 | |
Settlement Date:
|
April 17, 2009 | |
Maturity Date:
|
May 1, 2019 | |
Interest Payment Dates:
|
Each May 1 and November 1, commencing on November 1, 2009 | |
Coupon:
|
5.875% | |
Gross Spread:
|
0.65% | |
Issue Price:
|
100.00% | |
All-in Price:
|
99.35% | |
Redemption:
|
No mandatory or optional redemption | |
Minimum Denominations:
|
$1,000 | |
CUSIP:
|
130789 AE0 | |
Sole Bookrunner:
|
Robert W. Baird & Co. |
Use of Proceeds
|
The Company estimates that it will receive approximately $96,915,000 in net proceeds from the sale of the bonds, after deducting an aggregate of approximately $650,000 in underwriting discounts and commissions and $2,435,000 in estimated offering expenses. | |
The Company intends to use the net proceeds of this offering to repay the outstanding balance on the line of credit under its loan agreement with Bank of America, N.A. As of December 31, 2008, there was an outstanding balance of $28 million on the line of credit under the Companys loan agreement with Bank of America and the interest rate on these borrowings was 1.75%. As of December 31, 2008 this line of credit was scheduled to expire on April 30, 2012. The Company used the borrowings under this line of credit for general corporate purposes. The Company also intends to use the net proceeds of this offering for general corporate purposes, such as increasing its working capital, making capital expenditures, acquiring assets and taking advantage of other business opportunities. Pending application of the net proceeds as described above, the Company may invest the proceeds in short-term securities. |
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