H2O AMERICAHTO
H2O AMERICA Debt Disclosure
Lines of Credit
H2O America and its subsidiaries have unsecured line of credit agreements where borrowings are used to refinance existing debt, for working capital, and for general corporate purposes. A summary of the line of credit agreements as of December 31, 2025 and 2024 are as follows:
2025 | 2024 | ||||||||||||||||||||||||||||
| Maturity Date | Line Limit | Amounts Outstanding | Unused Portion | Amounts Outstanding | |||||||||||||||||||||||||
| Syndicated credit agreement: | September 12, 2030 | ||||||||||||||||||||||||||||
H2O America | $ | 50,000 | 11,000 | 39,000 | 3,000 | ||||||||||||||||||||||||
| SJWC | 165,000 | 45,000 | 120,000 | 44,000 | |||||||||||||||||||||||||
| CTWS | — | — | — | 30,000 | |||||||||||||||||||||||||
CWC | 80,000 | 13,000 | 67,000 | — | |||||||||||||||||||||||||
MWC | 25,000 | — | 25,000 | — | |||||||||||||||||||||||||
SJWTX | 30,000 | 16,000 | 14,000 | — | |||||||||||||||||||||||||
| Total syndicated credit agreement | 350,000 | 85,000 | 265,000 | 77,000 | |||||||||||||||||||||||||
SJWC credit agreement | June 11, 2026 | 10,000 | — | 10,000 | — | ||||||||||||||||||||||||
| CTWS credit agreement | August 2, 2028 | 10,000 | 1,834 | 8,166 | 2,124 | ||||||||||||||||||||||||
CTWS credit agreement (1) | May 15, 2025 | — | — | — | 40,000 | ||||||||||||||||||||||||
| $ | 370,000 | 86,834 | 283,166 | 119,124 | |||||||||||||||||||||||||
(1) CTWS repaid the outstanding balance under this credit agreement and concurrently terminated this credit agreement.
Total outstanding borrowings under the unsecured lines of credits as of December 31, 2025 and 2024 were $86,834 and $119,124, respectively. The weighted-average interest rate on short-term borrowings outstanding at December 31, 2025, was 4.75% compared to 6.08% at December 31, 2024. As of December 31, 2025, the unused portion of the lines of credit available for future borrowings was $283,166.
All of H2O America’s and subsidiaries’ lines of credit contain customary representations, warranties and events of default, as well as certain restrictive covenants customary for facilities of this type, including restrictions on indebtedness, liens, acquisitions and investments, restricted payments, asset sales, and fundamental changes. The lines of credit also include certain customary financial covenants such as a funded debt to capitalization ratio and a minimum interest coverage ratio. As of December 31, 2025, H2O America and its subsidiaries were in compliance with all covenants on the lines of credit.
Syndicated Credit Agreement
In August 2022, H2O America, SJWC, TWC, and CTWS have entered into a $300,000 credit agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as Administrative Agent (“JP Morgan”), Wells Fargo Bank, National Association, as Documentation Agent, and a syndicate of banks with a term of five years. The Credit Agreement was subsequently amended to extend the maturity date from August 2027 to August 2028 and further amended to extend the maturity date to August 2029.
On September 12, 2025, H2O America and its subsidiaries, SJWC, SJWTX, CWC and MWC, entered into an Amended and Restated Credit Agreement to extend and increase the revolving credit facility with JPMorgan Chase Bank and Wells Fargo Securities, LLC. Pursuant to the amended agreement, the total commitment under the facility was increased from $300,000 to $350,000, and the maturity date was extended from August 2029 to September 12, 2030.
Under the terms of the Credit Agreement, each of H2O America, SJWC, SJWTX, CWC and MWC is a borrower with several and not joint liability. Each borrower has an initial borrowing entitlement, or sublimit, which can be periodically adjusted from time to time as set forth in the Credit Agreement. The initial sublimit of each borrower is as presented in the table above.
Borrowings under the Credit Agreement bear interest at either the Alternative Base Rate (as defined in the Credit Agreement and hereinafter referred to as “ABR”) or the Adjusted Term Secured Overnight Financing Rate (as defined in the Credit Agreement and hereinafter referred to as “SOFR”). ABR borrowings (which are borrowings bearing interest at a rate determined by reference to ABR) will bear interest at a rate per annum equal to ABR plus the applicable rate. SOFR borrowings (which are borrowings bearing interest at a rate determined by reference to SOFR) will bear interest at a rate per annum equal to SOFR plus the applicable rate. The applicable rate and pricing is variable depending on credit ratings of the borrower.
The Credit Agreement includes a financial covenant that requires each of the borrowers to maintain its funded debt to capitalization ratio at or below 70%.
As of December 31, 2025 and 2024, there were $85,000 and $77,000, respectively, in outstanding borrowings under the Credit Agreement.
CTWS Credit Agreements
Upon acquisition, CTWS held effective credit agreements with CoBank, ACB and Citizens Bank, N.A., (a former subsidiary of RBS Citizens, N.A. that was a party to the original credit agreement) that provided up to $40,000 and $75,000, respectively, in available borrowings. The credit agreement between CTWS and Citizens Bank, N.A. was amended in December 2019 which reduced available borrowings from $75,000 to $10,000. The credit agreement between CTWS and Citizens Bank, N.A., was further amended in August 2023 which extended the termination date from December 2023 to August 2, 2028. On July 11, 2025, CTWS repaid the outstanding balance of $25,000 under its credit agreement with CoBank, ACB and concurrently terminated the credit agreement.
As of December 31, 2025 and 2024, there were $1,834 and $2,124, respectively, in outstanding borrowings under the CTWS credit agreement with Citizens Bank, N.A.
SJWC Credit Agreement
On June 11, 2025, SJWC entered into a $10,000 credit agreement with JPMorgan Chase Bank, N.A., with a maturity date of June 11, 2026.
There were no outstanding borrowings under the credit agreement between SJWC and JPMorgan Chase Bank, N.A., as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 23, 2024 | |
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.