Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 446

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 446
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 Payable as of December 31, 2024 are extendable at the discretion of the Company. 

The interest rates are set for borrowings under
the Bank of America and PNC Bank lines of credit using the Secured Overnight Financing Rate (SOFR) and then adding a specific financial
institution credit spread. The interest rate for borrowings under the CoBank line of credit are set weekly using CoBank’s internal
cost of funds index that is similar to the SOFR and adding a credit spread. There is no requirement for a compensating balance under any
of the established lines of credit.

Note 6 - Capitalization

All the transactions discussed below related to
the issuance of securities were approved by either the NJBPU or DEPSC, except where otherwise noted.

Common Stock

The Company issues shares of its common
stock in connection with its Middlesex Water Company Investment Plan (the Investment Plan), a direct share purchase and dividend
reinvestment plan for the Company’s common stock. The Company raised approximately $1.0 million under the Investment Plan
during 2024. Currently, 0.7 million 

55 

shares remain registered with the United States Securities and Exchange Commission and available
for issuance to participants under the Investment Plan.

In April 2023, Middlesex received approval from
the NJBPU to issue and sell up to 1.0 million shares of its common stock, without par value, through December 31, 2025. Sales of additional
shares of common stock are part of the Company’s comprehensive financing plan to fund its multi-year utility plant infrastructure
investment program. As described below in “Long-term Debt”, the NJBPU also approved the debt funding component of the financing
plan.

The Company issues common shares under a restricted
stock plan for certain management employees, which is described in Note 7 – Employee Benefit Plans.

The Company maintains a stock plan for its independent
Directors as a component of outside members of the Board of Directors compensation. For the years ended December 31, 2024, 2023 and 2022,
7,570, 4,608 and 2,664 shares, respectively, of Middlesex common stock were granted and issued to the Company’s independent Directors
under the plan. The maximum number of shares authorized for grant under the plan is 100,000, of which 34,283 shares remain available for
future awards.

In the event dividends on the preferred stock
are in arrears