EXHIBIT 99.1
Published on October 6, 2006
Exhibit 99.1
NEWS RELEASE CALIFORNIA WATER SERVICE GROUP |
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1720 North First Street | October 5, 2006 | |||||
San Jose, CA 95112-4598 | ||||||
Contact:
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Marty Kropelnicki (408) 367-8200 (analysts) | For Immediate Release | ||||
Shannon Dean (310) 257-1435 (media) |
CALIFORNIA WATER SERVICE GROUP PRICES
PUBLIC OFFERING OF 2,000,000 SHARES OF COMMON STOCK
SAN JOSE, Calif. California Water Service Group (NYSE: CWT) announced today that a public
offering of 2,000,000 shares of its common stock was priced at $36.75 per share to yield total
gross proceeds to the Company of $73.5 million. The offering is expected to close on October 12,
2006. The Company has granted the underwriters a 30-day option to purchase up to an additional
300,000 shares of its Common Stock to cover over-allotments, if any.
Robert W. Baird & Co. Incorporated is acting as the sole bookrunning manager for the
offering, with A.G. Edwards & Sons, Inc. acting as joint lead-manager. Edward D. Jones & Co.
L.P., J.J.B. Hilliard, W.L. Lyons, Inc. and Stifel, Nicolaus & Company, Incorporated are acting as
co-managers.
The Company plans to add the net proceeds of approximately $70.7 million, after deducting
underwriting commissions 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.
Copies of the final Prospectus Supplement may be obtained from Robert W. Baird & Co.
Incorporated, Syndicate Department, 777 East Wisconsin Avenue, Milwaukee, WI 53202, or by calling
1- 800-RWBAIRD (1-800-792-2473).
This news release contains forward-looking statements within the meaning established by
the Private Securities Litigation Reform Act of 1995 (Act). The forward-looking statements are
intended to qualify under provisions of the federal securities laws for safe harbor treatment
established by the Act. Forward-looking statements are based on currently available information,
expectations, estimates, assumptions and projections, and managements judgment about the Company,
the water utility industry and general economic conditions. Such words as expects, intends, plans,
believes, estimates, assumes, anticipates, projects, predicts, forecasts or variations of such
words or similar expressions are intended to identify forward-looking statements. The
forward-looking statements, including, among others, statements regarding the anticipated closing
date, the Companys current intentions regarding the use of proceeds and whether the underwriters
will exercise their over-allotment option, are not guarantees of future performance. They are
subject to uncertainty and changes in circumstances. The Companys results may vary materially
from what is contained in a forward-looking statement. Factors that may cause a result different
than expected or anticipated include but are not limited to: the failure by any of the parties to
the underwriting agreement to fulfill the terms and conditions therein; the occurrence of any event
causing a material adverse effect on the Company, such as a disruption in the financial markets,
natural disasters, civil disturbances, terrorist threats or acts and an escalation in the
involvement of the United States in war or other hostilities; governmental and regulatory
commissions decisions, including decisions relating to ratemaking and also relating to proper
disposition of property; changes in regulatory commissions policies and procedures; the timeliness
of regulatory commissions actions concerning rate relief; changes in the political landscape;
changes in existing law and introduction of new legislation; changes in, and the accuracy of,
accounting valuations and estimates; the ability to satisfy requirements related to the
Sarbanes-Oxley Act and other regulations on internal controls; increases in suppliers prices and
the availability of uninterrupted supplies including water and electric power; fluctuations in
interest rates; changes in environmental compliance and water quality requirements; acquisitions
and our ability to successfully integrate acquired companies; our success entering into new, and
renewing existing, service contracts with cities, agencies and municipal utility districts; our
ability to manage growth; the ability to successfully implement business plans; work stoppages and
union issues; loss of key personnel; changes in customer water use patterns; the impact of weather
on water sales and operating results; access to sufficient capital on satisfactory terms;
restrictive covenants in or changes to the credit ratings on our current or future debt that could
increase the Companys financing costs or affect its ability to borrow, make payments on debt or
pay dividends; the reliability of the Companys information technology; litigation with third
parties; and, other risks and unforeseen events. When considering forward-looking statements, you
should keep in mind the cautionary statements included in this paragraph as well as other risk
factors disclosed in the Companys Registration Statement on Form S-3 for this offering, 10-Ks,
10-Qs, 8-Ks and others filings made by the Company and on file with the SEC. The Company assumes
no obligation to provide public updates of forward-looking statements.
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Source: California Water Service Group
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