PHOENIX, AZ, June 27, 2016 /PRNewswire/ - Global Water
Resources, Inc. (NASDAQ: GWRS, TSX: GWR) (the "Company") announced
today that it has completed the refinancing of its long-term
debt. The Company issued, pursuant to a Note Purchase
Agreement dated May 20, 2016, two
series of senior secured notes in a total principal amount of
$115 million. The new notes have a
blended interest rate of 4.55% and provide for no principal
payments during the first five years of the term. The Company used
the proceeds to retire its existing long-term debt of $107 million and pay the associated prepayment
penalties of $3.2 million. The
remaining proceeds will be used by the Company for general
corporate purposes. The transaction closed on June 24, 2016.
"This debt refinancing significantly improves our cash flow and
provides us the liquidity to make strategic decisions that focus on
growing the long term value of the Company," said Ron Fleming, Chief Executive Officer. "This
closing marks the completion of a four year strategy to best
position the Company for the long term."
"In addition to lower interest costs and deferred principal
payments, the Company's cash balance has increased more than
$12.0 million, as a result of this
transaction," added Mike Liebman,
Chief Financial Officer. "We look forward to the opportunities
the refinancing provides us as we look to grow into the
future."
About Global Water Resources, Inc.
The Company is a water resource management company located in
Phoenix, Arizona, that owns and
operates regulated water, wastewater and recycled water utilities
in the metropolitan Phoenix
area.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain forward-looking
statements. These forward-looking statements include, but are not
limited to, interest costs, the expected use of proceeds, the
expected improvements in cash flow and liquidity and other
statements that are not historical facts as well as statements
identified by words such as "expects", "anticipates", "intends",
"plans", "believes", "seeks", "estimates", or the negative of these
terms, or other words of similar meaning. These statements are
based on our current beliefs or expectations and are inherently
subject to significant uncertainties and changes in circumstances,
many of which are beyond our control. Actual results may differ
materially from these expectations due to changes in global
political, economic, business, competitive, market and regulatory
factors and other factors. Accordingly, investors are cautioned not
to place undue reliance on any forward-looking statements, which
reflect management's views as of the date hereof. Factors that may
affect future results are disclosed under the headings "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" in our filings with the
Securities and Exchange Commission (the "SEC"), which are available
at the SEC's website at www.sec.gov. We
undertake no obligation to publicly update any forward-looking
statement, except as required by law, whether as a result of new
information, future developments or otherwise.
SOURCE Global Water Resources Inc.
