Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 412

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 412
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MBs
issued is $52.2 million and designated as Series 2022A ($16.2 million) and Series 2022B ($36.0 million). The interest rate on the Series
2022A bond is zero and the interest rate on the Series 2022B bond ranges between 2.7% and 3.0%. The final maturity date for both FMBs
is August 1, 2056, with scheduled debt service payments over the life of these loans.

Substantially all of the utility plant of the
Company is subject to the lien of its mortgage, which includes debt service and capital ratio covenants. The Company is in compliance
with all of its mortgage covenants.

Common Stock - The Company issues shares
of its common stock in connection with the Investment Plan, a direct share purchase and dividend reinvestment plan for the Company’s
common stock. The Company raised approximately $1.0 million through the issuance of shares under the Investment Plan during 2024. In May
2023, Middlesex received approval from the NJBPU to increase the number of authorized shares under the Investment Plan by 0.7 million
shares. Currently, 0.7 million shares remain registered with the United States Securities and Exchange Commission and available for issuance
to participants under the Investment Plan.

In order to fully fund the ongoing capital investment
program and maintain a balanced capital structure required for a regulated water utility, Middlesex may offer for sale additional shares
of its common stock. The amount, the timing and the sales method of the common stock is dependent on the timing of the construction expenditures,
the level of additional debt financing and financial market conditions. Common stock offerings will occur as needed to maintain a balanced
capital structure as we continue on a parallel path with future debt offerings.

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 above in “Long-term Debt”, the NJBPU also approved the debt funding component of the financing
plan.

Contractual Obligations

In the course of normal business activities, the
Company enters into a variety of contractual obligations and commercial commitments. Some result in direct obligations on the Company’s