San Jose Water enters into $140 million credit facility due 2023

Chicago, April 27 – San Jose Water Co., a wholly owned subsidiary of SJW Group, entered into a new $140 million credit agreement with JPMorgan Chase Bank, NA as lender on April 23, according to an 8-K filing with the Securities and Exchange Commission.

The facility has a letter of credit sublimit of $15 million.

Borrowings, based on ratings, have an interest rate of Libor plus 75 basis points to 137.5 bps.

There is a commitment fee of 7.5 bps to 22.5 bps, also based on ratings.

Proceeds may be used to refinance existing debt, for working capital and for general corporate purposes.

The facility matures Dec. 31, 2023.

The new facility replaces the $140 million credit agreement from June 1, 2016 that was going to mature and expire on June 1.

Additionally, SJWTX, Inc., a separate wholly owned subsidiary of SJW Group signed a $5 million credit agreement with JPMorgan. The facility has a letter of credit sublimit of $1 million. The facility replaces the June 1, 2016 facility which was also set to expire on June 1.

SJW is San Jose, Calif.-based holding company. San Jose Water is a public water utility.

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