PHOENIX, AZ, July 15, 2015 /CNW/
- GWR Global Water Resources Corp. ("GWRC") (TSX: GWR) today
announced that Global Water Resources, Inc. ("Global Water" or the
"Company") has closed on the transfer of the assets of Valencia
Water Company, Inc. ("Valencia"), a subsidiary of Global Water, to
the City of Buckeye ("Buckeye").
Through a settlement agreement for stipulated condemnation and
stipulated court order, Buckeye has acquired substantially all of
the assets of Valencia and today
assumed the operations of the utility. Buckeye paid Global Water
US$55 million on closing, plus an
additional $198,000 as a result of a
working capital adjustment. As of March 31,
2015, Valencia accounted
for 6,719, or 15.3%, of Global Water's 43,866 active service
connections.
Under the terms of the settlement, Buckeye will pay to Global
Water a growth premium equal to US$3,000 for each new water meter installed
within the prior service areas of Valencia for a 20-year period ending
December 31, 2034, subject to a
maximum payout of US$45
million. The first growth premium payment due to the
Company will occur in mid-November, and will include payment for
the new water meters installed during the first three quarters of
2015. Subsequently, growth premium payments will be paid
quarterly.
Approximately US$21.5 million of
the proceeds received from the transaction were used to repay in
full, the Company's commercial debt with MidFirst Bank.
"We are very pleased to announce the closing of this
transaction, which materially strengthens our balance sheet," said
Ron Fleming, President and CEO of
Global Water. "When combined with the ongoing phase-in of new
rates, the improvement in the housing market, and the successful
execution of our strategic plan to focus on our core, regulated
utility assets, the fundamentals of our company are very
strong."
About GWR Global Water Resources Corp.
GWRC was incorporated in British
Columbia to acquire shares of U.S. based Global Water and to
actively participate in the management, business and operations of
Global Water through its representation on the board of directors
of Global Water and its shared management of Global Water. GWRC
owns an approximate 48.1% interest in Global Water, a pure-play,
high growth, water resources company located in Phoenix, Arizona that owns and operates
regulated water, wastewater and recycled water utilities.
Cautionary Note Regarding Forward-Looking
Statements
This press release includes certain forward-looking
statements. These forward looking statements include, but are
not limited to, 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 political, economic, business, competitive, market and
regulatory factors and other factors discussed under the heading
"Risk Factors" in the Company's most recent Annual Information
Form. 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 GWR Global Water Resources Corp.