Cal Water prices $125M in notes, parent of utility serving 2.2M people
What's the deal? California Water Service GroupDealroom has a profile for this one. Try Dealroom → (NYSE: CWT) has priced $125 million in senior unsecured notes through private placement, the San Jose company announced October 15. Its wholly owned subsidiary, California Water ServiceDealroom has a profile for this one. Try Dealroom → Company, separately priced $150 million in first mortgage bonds. Both transactions are expected to close on or before December 31, 2026.
The breakdown: The notes split into $75 million of 6.08% notes due 2031 and $50 million of 6.41% notes due 2036. The bonds comprise $50 million of 6.49% bonds maturing 2046 and $100 million of 6.54% bonds maturing 2056.
What's the money for? Both entities plan to use net proceeds to refinance existing debt and for general corporate purposes. The parent's notes will rank equally with its debt under a March 2023 credit agreement with Bank of America. The subsidiary's bonds will be secured by liens on its properties.
Why now? The company is locking in long-dated fixed rates, stretching maturities as far as 2056, while refinancing existing obligations. Neither the notes nor the bonds have been registered under the Securities Act of 1933.
The bigger picture: California Water Service Group is the parent of regulated utilities across five states, providing water and wastewater service to more than 2.2 million people in California, Hawaii, New Mexico, Texas, and Washington.
The signal: At $125 million, the raise sits near the top of comparable debt deals — a reminder that capital-intensive regulated utilities lean on steady, long-term financing to fund infrastructure rather than growth-stage equity.
Read more: pr.lakeoconeebreeze.net
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