Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 1017

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 6
Chunk 1017
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, are entitled to elect
two members to the Board of Directors in addition to Directors elected by holders of the common stock. In addition, if Middlesex were
to liquidate, holders of preferred stock would be paid back the stated value of their preferred shares before any distributions could
be made to common stockholders.

The conversion feature of the no par $7.00 Series
Cumulative and Convertible Preferred Stock allows the security holders to convert one convertible preferred share for twelve shares of
the Company's common stock. In 2024, 4,275 shares of the Company’s no par $7.00 Series Cumulative and Convertible Preferred Stock
were converted into 51,300 shares (approximately $0.4 million) of the Company’s common stock. In addition, the Company may redeem
up to 10% of the outstanding convertible stock in any calendar year at a price equal to the fair value of twelve shares of the Company's
common stock for each share of convertible stock redeemed.

Long-term Debt

Subject to regulatory approval, the Company periodically
issues long-term debt to fund its investments in utility plant. To the extent possible and fiscally prudent, the Company finances qualifying
capital projects under State Revolving Fund (SRF) loan programs in New Jersey and Delaware. These government programs provide financing
at interest rates typically below rates available in the broader financial markets.

Middlesex has received approval from the NJBPU
to borrow up to $300.0 million from the New Jersey SRF Program, the New Jersey Economic Development Authority, private placement and other
financial institutions as needed through December 31, 2025. The Company expects to issue debt securities in a series of one or more transaction
offerings over a multi-year period to help fund Middlesex’s multi-year capital construction program.

In September 2024, Tidewater closed on a $2.2
million Delaware SRF loan with a 0.0% interest rate with an expected maturity date in 2044. This loan is for costs associated with Tidewater’s
obligation, as required by federal law and Delaware regulations, to identify and inventory lead service lines throughout Tidewater’s
service area. Tidewater has drawn down $1.7 million as of December 31, 2024.

56 

In May 2024, Tidewater closed on four DEPSC-approved
Delaware SRF loans totaling $5.6 million, all at interest rates of