California Water Service (NYSE:CWT), a wholly owned subsidiary of California Water Service Group sold $300M in the aggregate principal amount of first mortgage bonds in a private placement.
The $300M floating rate bonds, series UUU, maturing September 13, 2020 is set at three-month LIBOR plus 70 bps, callable at par after nine months or any time prior at a premium of 102% of par.
The bonds closed on September 13, 2018.
Interest on the Bonds will accrue quarterly and be payable in arrears. The bonds will rank equally with all of the company's other first mortgage bonds and will be secured by liens on Cal Water's properties, subject to certain exceptions and permitted liens.
Net proceeds will be used to pay down outstanding short-term borrowings and the remainder to its general funds to be used for general corporate purposes, including capital projects.
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