By Marisa Wong
Morgantown, W.Va., Feb. 2 – Artesian Resources Corp.’s principal subsidiary, Artesian Water Co., Inc., agreed to issue a $25 million first mortgage bond, series U, due Jan. 31, 2038 to CoBank, ACB. The companies entered into a bond purchase agreement on Jan. 31, according to an 8-K filing with the Securities and Exchange Commission.
The bond carries an annual interest rate of 4.71%. Interest is payable quarterly.
The bond is conditionally putable at par plus a make-whole amount.
Proceeds will be used to repay some mortgage bonds at their maturity.
Artesian is a water utility based in Newark, Del.
Issuer: | Artesian Water Co., Inc.
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Issue: | First mortgage bond, series U
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Amount: | $25 million
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Maturity: | Jan. 31, 2038
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Coupon: | 4.71%, payable quarterly
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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. 31
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Distribution: | Private placement
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