Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 22

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1
Chunk 22
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 comes due or we default under certain other provisions of our loan documents, our indebtedness could be accelerated
and our results of operations and financial condition could be adversely affected.

Our ability to pay the principal and interest
on our indebtedness as it comes due will depend upon our current and future performance. Our performance is affected by many factors,
some of which are beyond our control.

We believe cash generated from operations and,
if necessary, borrowings under existing credit facilities, will be sufficient to enable us to make our debt payments as they become due.
If, however, we do not generate sufficient cash, we may be required to attempt to refinance our obligations or sell additional equity.

15 

No assurance can be given that any refinancing
or sale of equity will be possible when needed, or that we will be able to negotiate favorable terms. In addition, our failure to comply
with certain provisions contained in our trust indentures and loan agreements relating to our outstanding indebtedness could lead to a
default under these documents, which could result in an acceleration of our indebtedness.

The current concentration of our business in
central New Jersey and in Delaware makes us susceptible to adverse developments in local regulatory, economic, demographic, competitive
and weather conditions.

Our Middlesex System provides water services to
customers located primarily in eastern Middlesex County, New Jersey. Water service is provided under wholesale contracts to the Townships
of Edison, East Brunswick and Marlboro, the Borough of Highland Park, the Old Bridge Municipal Utilities Authority and the City of Rahway.
We also provide water services to customers in the State of Delaware. Our revenues and operating results are therefore subject to local
regulatory, economic, demographic, competitive and weather conditions in a relatively concentrated geographic area. A change in any of
these conditions could make it more costly for us to conduct our business or reduce the revenue earned in conducting our business.

We are subject to anti-takeover measures that
may be used to discourage, delay or prevent changes of control that might benefit non-management shareholders.

Subsection 10A of the New Jersey Business Corporation
Act, known as the New Jersey Shareholders Protection Act, applies to us. The Shareholders Protection Act deters merger proposals, tender
offers or other attempts to effect changes in control that are not approved by our Board of Directors. In addition, we have a classified
Board of Directors, which means only a portion of the Director population is elected each year. A classified Board can make it more difficult
for an acquirer