SHORT-TERM BORROWINGS

12 Months Ended

Dec. 31, 2015

On March 10, 2015, the Company and Cal Water entered into Syndicated Credit Agreements, which provide for unsecured revolving credit facilities of up to an initial aggregate amount of $450.0 million for a term of 5 years. The Syndicated Credit Facilities amend, expand, and replace the Company’s and its subsidiaries’ existing credit facilities originally entered into on June 29, 2011. The new credit facilities extended the terms until March 10, 2020, and increased the Company’s unsecured revolving line of credit. The Company and subsidiaries that it designates may borrow up to $150.0 million under the Company’s revolving credit facility. Cal Water may borrow up to $300.0 million under its revolving credit facility; however, all borrowings need to be repaid within 12 months unless otherwise authorized by the CPUC. The credit facilities may each be expanded by up to $50.0 million subject to certain conditions. The proceeds from the revolving credit facilities may be used for working capital purposes, including the short-term financing of capital projects. The base loan rate may vary from LIBOR plus 72.5 basis points to LIBOR plus 95 basis points, depending on the Company’s total debt ratio. Likewise, the unused commitment fee may vary from 8 basis points to 12.5 basis points based on the same ratio.

Both short-term unsecured credit agreements contain affirmative and negative covenants and events of default customary for credit facilities of this type including, among other things, limitations and prohibitions relating to additional indebtedness, liens, mergers, and asset sales. Also, these unsecured credit agreements contain financial covenants governing the Company and its subsidiaries' consolidated total debt ratio and interest coverage ratio.

As of December 31, 2015 and December 31, 2014, the outstanding borrowings on the Company lines of credit were $33.6 million and $61.7 million, respectively. The were no borrowings on the Cal Water lines of credit as of December 31, 2015 and borrowings of $17.4 million as of December 31, 2014.

The following table represents borrowings under the bank lines of credit:



	2015			2014
Maximum short-term borrowings	$	139,582		$	82,668
Average amount outstanding	$	104,863		$	69,267
Weighted average interest rate	1.04		%	1.15		%
Interest rate at December 31	1.03		%	1.12		%