Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 528

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2
Chunk 528
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 on two DEPSC-approved
Delaware SRF loans totaling $6.9 million, all at interest rates of 2.0% with maturity dates in 2043 and 2044. These loans are for the
construction, relocation, improvement, and/or interconnection of transmission mains. Tidewater has fully drawn on these loans.

In March 2023, Middlesex closed on a $40.0 million,
5.24% private placement of First Mortgage Bonds (FMBs) with a 2043 maturity date designated as Series 2023A. Proceeds were used to reduce
the Company’s outstanding balances under its bank lines of credit.

In May 2022, Middlesex repaid its two outstanding
New Jersey Infrastructure Bank (NJIB) construction loans by issuing FMBs to the NJIB under two loan agreements. The total amount of FMBs
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