Company: MSEX
Filing Date: 2025-07-31
Form Type: 10-Q
Source: 0001174947-25-001119
Chunk: 115

Company: MIDDLESEX WATER CO
Filing Date: 2025-07-31
Form: 10-Q
Item: Item 2
Chunk 115
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 2025, Middlesex entered into an At -the-Market
(ATM) Equity Offering Sales Agreement (Equity Sales Agreement) with BofA Securities, Inc., Robert W. Baird & Co. Incorporated, and
Janney Montgomery Scott LLC, pursuant to which Middlesex may offer and sell shares of its common stock, no par value per share, from time
to time in “at-the-market” offerings, having an aggregate gross sales price of up to $110.0 million. The Company intends to
use the net proceeds from these sales, after deducting commissions and offering expenses, to fund our capital expenditures, to purchase
and maintain plant equipment, as well as for other general corporate purposes. Since the inception of the Equity Sales Agreement through
June 30, 2025, the Company has issued and sold 63,955 shares of common stock at a weighted average price of $57.23 for a total net proceeds
of $3.6 million and has $106.3 million of aggregate gross sales price of shares remaining to issue under the Equity Sales Agreement as
of June 30, 2025. 

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In May 2025, Middlesex filed a petition with the NJBPU
seeking approval to issue and sell up to 2.5 million shares of its common stock during the period January 2026 through December 2028,
in one or more offerings through a traditional underwritten public offering and/or an ATM offering, in order to fund portions of its capital
program and other funding requirements. The NJBPU is expected to render its decision on this petition in the third quarter of 2025.

Recent Accounting Pronouncements – See
Note 1 of the Notes to Unaudited Condensed Consolidated Financial Statements for a discussion of recent accounting pronouncements and
guidance.

Item 3. Quantitative and Qualitative Disclosures of Market Risk

We are exposed to market risk associated with changes
in interest rates and commodity prices. The Company is subject to the risk of fluctuating interest rates in the normal course of business.
Our policy is to manage interest rates through the use of fixed rate long-term debt and, to a lesser extent, short-term debt. The Company’s
interest rate risk related to existing fixed rate, long-term debt is not material due to the term of the majority of our First Mortgage
Bonds, which have final maturity dates ranging from 2026 to 2059. Over the next twelve months,