PHOENIX, AZ, June 10, 2015 /CNW/
- GWR Global Water Resources Corp. ("GWRC") (TSX: GWR) today
announced that the Maricopa County Superior Court judge signed the
Stipulated Final Judgement in Condemnation and the Stipulated Final
Order of Condemnation for the transfer of the assets of Valencia
Water Company, Inc. ("Valencia"), a subsidiary of Global Water
Resources, Inc. ("Global Water" or the "Company") to the City of
Buckeye ("Buckeye").
The material terms of the transaction are as follows:
- Buckeye to acquire all of the assets of Valencia and assume the operations of the
utility on closing;
- Buckeye to pay to Global Water US$55
million on closing, subject to a working capital adjustment;
and
- Buckeye to 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 signed orders will be placed in escrow subject to typical
closing conditions and Buckeye's completion of bond financing for
the initial payment, which is currently underway. Global Water
expects that the closing of this transaction will occur in the
third quarter of 2015.
As of March 31, 2015, Valencia accounted for 6,719, or 15.3%, of
Global Water's 43,866 active service connections. Completion of the
transfer of assets will allow Global Water to focus on further
maximizing the value of its core utilities. Approximately
US$21 million of the proceeds
received from the transaction will be allocated towards repaying
the Company's commercial debt with MidFirst Bank.
"The Valencia asset transfer
remains on schedule and we are pleased with the strong probability
of a near-term closing," said Ron
Fleming, President and CEO of Global Water. "While we remain
focused on the closing and transition, we continue to analyze all
options for the best use of proceeds to maximize shareholder value
and position Global Water for optimal long term results."
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 the expected timing and completion of the
condemnation transaction, and other statements contained in this
release 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, including the fact that the
expected completion of the condemnation transaction is subject to
closing conditions, including receipt of financing by
Buckeye. Actual results may differ materially from these
expectations due to changes in global political, economic,
business, competitive, market and regulatory factors and other
factors discussed under the heading "Risk Factors" in GWRC'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.