California Water Service To Offer 5 Mln Shares

(RTTNews.com) - California Water Service Group ( CWT ) said Monday that it plans to offer 5 million shares of its common stock in a registered offering.

The company also plans to grant the underwriters an option to purchase up to 750,000 additional shares to cover over-allotments, if any.

The main purpose of the offering is to fund capital expenditures to enhance general operations. The company said it plans to add the net proceeds from the sale of the common stock to its general funds to be used for general corporate purposes, such as investing in its subsidiaries, increasing its working capital, making capital expenditures, acquiring assets and taking advantage of other business opportunities. Specific allocations of the proceeds to such purposes have not been determined.

Initially, the net proceeds may also be used to temporarily reduce borrowings under the company's $100 million unsecured revolving credit facility or Cal Water's$300 million unsecured revolving credit facility.

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