California Water Prices $275M in Debt to Refinance Existing Borrowings
CWT is trading near its 52-week low of $41.29 (11% above the low).
Summary
California Water Service Group priced $125M of senior unsecured notes and its Cal Water subsidiary priced $150M of first mortgage bonds, $275M total, in private placements. The notes carry coupons of 6.08% (Series C, due 2031) and 6.41% (Series D, due 2036); the bonds carry 6.49% (Series 4, due 2046) and 6.54% (Series 5, due 2056). Proceeds refinance existing debt and fund general corporate purposes, so this is a balance-sheet refinancing rather than new growth capital. The coupons sit in the mid-6% range, a meaningful cost of capital for a regulated water utility, but the deal is modest relative to the company's roughly $2.8B market cap and largely offsets existing obligations. The transactions are expected to close on or before December 31, 2026, subject to customary conditions.
At the time of this announcement, CWT was trading at $45.82 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $41.29 to $53.82. This news item was assessed with neutral market sentiment and an importance score of 7 out of 10. Source: GlobeNewswire.