CALIFORNIA WATER SERVICE GROUPCWT

CALIFORNIA WATER SERVICE GROUP Debt Disclosure

10-KFiled Mar 1, 20232 min read
LONG-TERM DEBT
As of December 31, 2022 and 2021, long-term debt outstanding was:
 SeriesInterest RateMaturity Date20222021
First Mortgage BondsZZZ2.870 %2051$130,000 $130,000 
13.020 %2061150,000 150,000 
YYY4.170 %2059200,000 200,000 
WWW4.070 %2049100,000 100,000 
VVV3.400 %2029100,000 100,000 
TTT4.610 %205610,000 10,000 
SSS4.410 %204640,000 40,000 
QQQ3.330 %202550,000 50,000 
RRR4.310 %204550,000 50,000 
PPP5.500 %2040100,000 100,000 
AAA7.280 %202520,00020,000 
BBB6.770 %202820,000 20,000 
CCC8.150 %203020,000 20,000 
DDD7.130 %203120,000 20,000 
EEE7.110 %203220,000 20,000 
GGG5.290 %2022— 1,818 
HHH5.290 %2022— 1,818 
III5.540 %2023909 1,818 
OOO6.020 %203120,000 20,000 
Total First Mortgage Bonds   1,050,909 1,055,454 
California Department of Water Resources Loans 
1.48% - 1.69%
2027 - 2039
4,515 4,832 
Other long-term debt   5,485 6,039 
Unamortized debt issuance costs(5,112)(5,339)
Total long-term debt, net of unamortized debt issuance costs  1,055,797 1,060,986 
Less current maturities of long-term debt, net   3,310 5,192 
Long-term debt, net   $1,052,487 $1,055,794 
Maturities of long-term debt as of December 31, 2022 are as follows:
Year Ending December 31,Long-term debt*
2023$1,283 
2024376 
202570,354 
2026356 
2027334 
Thereafter982,977 
_______________________________________________________________________________
*    Excludes maturities for finance lease obligations. See note 14 for maturities for finance lease obligations.
On May 11, 2021, Cal Water completed the sale and issuance of $280.0 million in aggregate principal amount of First Mortgage Bonds (the Bonds) in a private placement. The Bonds consist of $130.0 million of 2.87% bonds, series ZZZ, maturing May 11, 2051, and $150.0 million of 3.02% bonds, series 1, maturing May 11, 2061. Interest on the bonds accrues semi-annually and is payable in arrears. 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 used the net proceeds from the sale of the Bonds to refinance existing indebtedness and for general corporate purposes. The Bonds were not registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.
On October 4, 2011, Cal Water entered into a finance lease arrangement with the City of Hawthorne to operate the City's water system for a 15-year period. The $3.2 million and $3.9 million finance lease liability as of December 31, 2022 and 2021, respectively, is included in other long-term debt and current maturities set forth above.

Historical Timeline

Fiscal YearFiled
2022Mar 1, 2023Showing above
2021Feb 24, 2022
2020Feb 25, 2021
2019Feb 27, 2020
2018Feb 28, 2019
2017Mar 1, 2018
2016Feb 23, 2017
2015Feb 25, 2016

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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