Company: MSEX
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0001174947-25-000251
Chunk: 447

Company: MIDDLESEX WATER CO
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1C
Chunk 447
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, no dividends may be declared or paid on the common stock of the Company.

Preferred Stock

At December 31, 2024 and 2023, there were 120,000
shares of preferred stock authorized and less than 16,000 shares of preferred stock outstanding. There were no preferred stock dividends
in arrears.

The Company may not pay any dividends on its common
stock unless full cumulative dividends to the preceding dividend date for all outstanding shares of preferred stock have been paid or
set aside for payment. If four or more quarterly dividends are in arrears, the preferred shareholders, as a class, 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.