Artesian Resources reports plans to conduct public sale of stock

Baird, Boenning, J. J. B. Hilliard and W.L. Lyons are the underwriters

By Devika Patel

Knoxville, Tenn., July 14 - Artesian Resources Corp. plans to price a public sale of its class A non-voting common stock, according to a prospectus supplement filed Thursday with the Securities and Exchange Commission.

Baird, Boenning & Scattergood, Inc. and J. J. B. Hilliard, W.L. Lyons, LLC are the underwriters.

Proceeds will be used for a paid-in capital contribution to Artesian Water, which intends to use the contribution to repay debt incurred to finance its construction program. These proceeds are expected to reduce Artesian Water's debt-to-total-capitalization ratio, which the company believes will improve Artesian Water's ability to secure additional long-term debt for future capital investments.

In addition, Artesian may use the proceeds to adjust capitalization ratios in its other subsidiaries or for interest-bearing, investment-grade securities.

The water utility is based in Newark, Del.

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