Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant
On February 25, 2021, California Water Service Company ("Cal Water"), a wholly
owned subsidiary of California Water Service Group, entered into a Bond Purchase
Agreement between Cal Water and the purchasers named therein (the "Bond Purchase
Agreement"), which provides for the issuance of first mortgage bonds in an
aggregate principal amount of $280 million. The bonds will be issued in two
series: $130 million of 2.87% bonds due 2051, series ZZZ; and $150 million of
3.02% bonds due 2061, series 1 (collectively, the "Bonds"). The Bonds are
expected to be issued on May 11, 2021 pursuant to a Sixty-Third Supplemental
Indenture.
Interest on the Bonds will accrue semi-annually and be payable in arrears on May
11 and November 11 of each year, commencing November 11, 2021. The Bonds will
rank equally with all of Cal Water's other First Mortgage Bonds and will be
secured by liens on Cal Water's properties, subject to certain exceptions and
permitted liens.
Cal Water plans to use the net proceeds from the sale of the Bonds to refinance
California Water Service Group's existing indebtedness and for general corporate
purposes, as set forth in California Public Utilities Codes Section 817.
The Bonds are being offered only to persons reasonably believed to be qualified
institutional buyers in reliance on Rule 144A under the Securities Act of 1933,
as amended (the "Securities Act"). The Bonds have not been registered under the
Securities Act and may not be offered or sold in the United States absent
registration or an applicable exemption from registration requirements.
This report shall not constitute an offer to sell or the solicitation of an
offer to buy any security and shall not constitute an offer, solicitation or
sale in any jurisdiction in which such offering, solicitation or sale would be
unlawful. Any offers of the Bonds will be made only by means of a private
offering memorandum.
© Edgar Online, source Glimpses