GWRS Reports New Material Agreement & Financial Obligation

TL;DR

**GWRS just took on a new financial obligation, watch for details on its impact.**

AI Summary

Global Water Resources, Inc. (GWRS) filed an 8-K on January 4, 2024, reporting an event that occurred on January 3, 2024, related to a material definitive agreement and the creation of a direct financial obligation. This filing indicates that the company has entered into a new financial arrangement, which could impact its balance sheet and future financial performance. For investors, this matters because new financial obligations can affect the company's profitability, cash flow, and overall risk profile, potentially influencing stock valuation.

Why It Matters

This filing signals a new financial commitment for Global Water Resources, Inc., which could alter its debt levels and financial flexibility. Investors should assess how this new obligation might impact the company's earnings and ability to fund future growth.

Risk Assessment

Risk Level: medium — The filing indicates a new financial obligation without specific details, creating uncertainty about its size and terms, which could pose a medium risk to the company's financial health.

Analyst Insight

A smart investor would monitor subsequent filings (like 10-Q or 10-K) for specific details regarding the 'Material Definitive Agreement' and 'Direct Financial Obligation' to understand their financial impact on Global Water Resources, Inc. (GWRS).

Key Numbers

• $0.01 — par value per share (This is the stated par value of Global Water Resources, Inc.'s Common Stock.)

Key Players & Entities

• Global Water Resources, Inc. (company) — the registrant filing the 8-K
• January 3, 2024 (date) — date of the earliest event reported
• January 4, 2024 (date) — date the 8-K was filed
• GWRS (company) — trading symbol for Global Water Resources, Inc.
• The NASDAQ Stock Market, LLC (company) — exchange where GWRS Common Stock is registered
• $0.01 (dollar_amount) — par value per share of Common Stock

Forward-Looking Statements

• Global Water Resources, Inc. will provide more details on the nature and terms of the new financial obligation in its next quarterly or annual report. (Global Water Resources, Inc.) — high confidence, target: Q1 2024 Earnings Report

FAQ

Key Financial Figures

• $0.01 — ich registered Common Stock, par value $0.01 per share GWRS The NASDAQ Stock Market,
• $20,000,000 — nce of an aggregate principal amount of $20,000,000 of 6.91% Senior Secured Notes due on Ja

Filing Documents

• gwrs-20240103.htm (8-K) — 38KB
• ex102guarantyagt-globalwat.htm (EX-10.2) — 84KB
• ex103guarantyagt-globalwat.htm (EX-10.3) — 84KB
• ex104guarantyagt-westmaric.htm (EX-10.4) — 84KB
• ex105pledgeandsecurityagmt.htm (EX-10.5) — 109KB
• ex106pledgeandsecurityagmt.htm (EX-10.6) — 117KB
• ex107pledgeandsecurityagmt.htm (EX-10.7) — 116KB
• ex108pledgeandsecurityagmt.htm (EX-10.8) — 112KB
• 0001434728-24-000026.txt ( ) — 1044KB
• gwrs-20240103.xsd (EX-101.SCH) — 2KB
• gwrs-20240103_def.xml (EX-101.DEF) — 15KB
• gwrs-20240103_lab.xml (EX-101.LAB) — 28KB
• gwrs-20240103_pre.xml (EX-101.PRE) — 15KB
• gwrs-20240103_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. As previously reported, on October 26, 2023, Global Water Resources, Inc. (the "Company") entered into a note purchase agreement (the "Note Purchase Agreement") for the issuance of an aggregate principal amount of $20,000,000 of 6.91% Senior Secured Notes due on January 3, 2034 (the "Notes"). Pursuant to the terms of the Note Purchase Agreement, the Company issued the Notes on January 3, 2024. In connection with the issuance of the Notes, on January 3, 2024, each of Global Water, LLC, Global Water Holdings, Inc., and West Maricopa Combine, LLC, each a wholly owned subsidiary of the Company (each, a "Guarantor"), entered into a guaranty agreement for the benefit of the holder of the Notes (collectively, the "Guaranty Agreements") pursuant to which each Guarantor jointly and severally guaranteed the Company's obligations under the Note Purchase Agreement and the Notes. The foregoing summary of the terms of the Guaranty Agreements is qualified in its entirety by the Guaranty Agreements, each of which is attached as Exhibits 10.2, 10.3, and 10.4 to this Current Report on Form 8-K and incorporated herein by reference. The obligations evidenced by the Notes are secured by a lien against the stock and equity interests of all direct and indirect subsidiaries of the Company and other property constituting collateral. In furtherance thereof, on January 3, 2024, the Company and each Guarantor entered into a pledge and security agreement with U.S. Bank Trust Company, National Association, as collateral agent for the holder of the Notes, relating to the collateral securing the Notes (collectively, the "Pledge and Security Agreements"). The foregoing summary of the terms of the Pledge and Security Agreements is qualified in its entirety by the Pledge and Security Agreements, each of which is attached as Exhibits 10.5, 10.6, 10.7, and 10.8 to this Current Report on Form 8-K and incorporated herein by reference. Item 2.0

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 4.1 Form of 6.91% Senior Secured Notes due on January 3, 2034 (included in Exhibit 10.1) 10.1 Note Purchase Agreement, dated October 26, 2023, by and between Global Water Resources, Inc. and Jackson National Life Insurance Company (incorporated by reference to the Company's Current Report on Form 8-K filed with the SEC on November 1, 2023) 10.2 Guaranty Agreement, dated as of January 3, 2024, by Global Water, LLC 10.3 Guaranty Agreement, dated as of January 3, 2024, by Global Water Holdings, Inc. 10.4 Guaranty Agreement, dated as of January 3, 2024, by West Maricopa Combine, LLC 10.5 Pledge and Security Agreement, dated as of January 3, 2024, by and between Global Water Resources, Inc. and U.S. Bank Trust Company, National Association, as collateral agent 10.6 Pledge and Security Agreement, dated as of January 3, 2024, by and between Global Water, LLC and U.S. Bank Trust Company, National Association, as collateral agent 10.7 Pledge and Security Agreement, dated as of January 3, 2024, by and between Global Water Holdings, Inc. And U.S. Bank Trust Company, National Association, as collateral agent 10.8 Pledge and Security Agreement, dated as of January 3, 2024, by and between West Maricopa Combine, LLC and U.S. Bank Trust Company, National Association, as collateral agent 104 Cover Page Interactive Data File (formatted as Inline XBRL)

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GLOBAL WATER RESOURCES, INC. Date: January 4, 2024 /s/ Michael J. Liebman Michael J. Liebman Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR