Southwest Water Company has completed its first syndicated loan with Bank of America and Union Bank of California. The facility consists of a five-year, $100 million revolver, which replaces two facilities totaling $50 million that was due 2006. Citigroup, CoBank and Bank of the West are also involved in the syndicate. Pricing on the facility is set on a leveraged and ratings-based grid.
The two lead banks previously led separate $25 million loans for the company. Cheryl Clary, cfo, said the facility would be used for general corporate purposes. In addition to relationship, the two leads were considered because they are the leading middle market lenders in Los Angeles., she added.
The Los Angeles-based company provides services for water production, treatment and distribution and public works services. It owns regulated public utilities and also serves cities and private companies under contract.