Bank Debt

12 Months Ended

Dec. 31, 2020

AWR currently has access to a $200.0 million credit facility expiring in May 2023 in order to provide funds to GSWC and ASUS in support of their operations on terms that are similar to that of the credit facility. During 2019 and 2020, AWR amended the credit facility to temporarily increase the borrowing capacity as high as $260.0 million in order to meet the operational needs of GSWC and ASUS. Following the issuance of GSWC’s long-term debt in July 2020, AWR reduced the aggregate borrowing capacity to $200.0 million pursuant to the terms of that credit facility agreement. At December 31, 2020, there was $134.2 million outstanding under the credit facility. The aggregate effective amount that may be outstanding under letters of credit is $25.0 million. AWR has obtained letters of credit, primarily for GSWC, in the aggregate amount of $455,000 at fees of 0.65%. Letters of credit outstanding reduce the amount that may be borrowed under the revolving credit facility. AWR is not required to maintain any compensating balances.

Loans may be obtained under this credit facility at the option of AWR and bear interest at rates based on credit ratings and Euro rate margins. In June 2020, Standard and Poor’s Global Ratings (“S&P”) affirmed an A+ credit rating with a stable outlook on both AWR and GSWC. S&P’s debt ratings range from AAA (highest possible) to D (obligation is in default). In June 2020, Moody's Investors Service ("Moody's") also reaffirmed its A2 rating with a stable outlook for GSWC.

Effective July 1, 2020, BVESI has access to a 3-year, $35.0 million revolving credit facility. As of December 31, 2020, there was $20.2 million outstanding under this facility. Borrowings made under this facility support the electric segment's operations and capital expenditures. Under the terms of the credit agreement, BVESI has the option to request an increase in the facility by an additional $15 million.

Registrant’s borrowing activities (excluding letters of credit) for the years ended December 31, 2020 and 2019 were as follows:


	December 31,
(in thousands, except percent)	2020			2019
Balance Outstanding at December 31,	$	134,200		$	205,000
Interest Rate at December 31,	1.19% ~ 1.90%			2.44		%
Average Amount Outstanding	$	162,995		$	167,392
Weighted Average Annual Interest Rate	1.47		%	2.88		%
Maximum Amount Outstanding	$	249,200		$	205,500

All of the letters of credit are issued pursuant to AWR's revolving credit facility. The revolving credit facility contains restrictions on prepayments, disposition of property, mergers, liens and negative pledges, indebtedness and guaranty obligations, transactions with affiliates, minimum interest coverage requirements, a maximum debt to capitalization ratio and a minimum debt rating. Pursuant to the credit agreement, AWR must maintain a minimum interest coverage ratio of 3.25 times interest expense, a maximum total funded debt ratio of 0.65 to 1.00 and a minimum Moody’s Investor Service or S&P debt rating of Baa3 or BBB-, respectively. As of December 31, 2020, 2019 and 2018, AWR was in compliance with these requirements. As of December 31, 2020, AWR had an interest coverage ratio of 7.74 times interest expense, a debt ratio of 0.47 to 1.00 and a debt rating of A+ by S&P.

Pursuant to BVESI's credit facility agreement, BVESI must maintain a minimum interest coverage ratio of 4.5 times interest expense and a maximum total funded debt ratio of 0.65 to 1.00. As of December 31, 2020, BVESI was in compliance with these requirements, with an actual interest coverage ratio of 35.6 times interest expense, a total funded debt ratio of 0.24 to 1.00. In addition, BVESI is required to have a current safety certification issued by the CPUC, which it currently has.