By Marisa Wong
Morgantown, W.Va., Jan. 20 – Artesian Resources Corp.’s principal subsidiary, Artesian Water Co., Inc., agreed to issue a $40 million first mortgage bond, series T, due Dec. 20, 2036 to CoBank, ACB. The companies entered into a bond purchase agreement on Jan. 18, according to an 8-K filing with the Securities and Exchange Commission.
The bond carries an annual interest rate of 4.24%. Interest is payable on June 30 and Dec. 31 of each year and at maturity.
The bond is conditionally putable at par plus a make-whole amount.
Proceeds will be used to prepay two existing first mortgage bonds: series O, principal amount $20 million with interest rate of 8.17% and related prepayment costs of $4.5 million; and series Q, principal amount $15.4 million with interest rate of 4.75%.
Artesian is a water utility based in Newark, Del.
| Issuer: | Artesian Water Co., Inc.
|
| Issue: | First mortgage bond, series T
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| Amount: | $40 million
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| Maturity: | Dec. 20, 2036
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| Coupon: | 4.24%; payable on June 30 and Dec. 31 of each year and at maturity
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| Put option: | At par plus a make-whole amount under certain circumstances
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| Purchaser: | CoBank, ACB
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| Pricing date: | Jan. 18
|
| Distribution: | Private placement
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