By Lisa Kerner
Charlotte, N.C., Sept. 18 – Artesian Water Co., Inc. agreed to issue a $15 million first mortgage bond, series S, due Dec. 31, 2033 to CoBank, ACB. The companies entered into a letter agreement on Sept. 15.
The bond carries an annual interest rate of 6.73% through March 1, 2016, according to an 8-K filed with the Securities and Exchange Commission.
The fixed annual interest rate effective March 1, 2016 through maturity is 4.45%.
After March 1, 2016, Artesian may request that the annual interest rate be fixed by CoBank for a period through the maturity date or for a mutually agreed upon shorter term.
The bond is subject to redemption in a principal amount equal to $150,000 per calendar quarter, payable on the first business day of January, April, July and October each year.
The principal amount of the bond at March 1, 2016 will be $10.65 million.
Interest is payable on the first business day of March, June, September and December in each year.
Artesian is a water utility is based in Newark, Del.
| Issuer: | Artesian Water Co., Inc.
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| Issue: | First mortgage bond, series S
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| Amount: | $15 million
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| Maturity: | Dec. 31, 2033
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| Coupon: | 6.73% through March 1, 2016; 4.45% effective March 1, 2016 through maturity
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| Purchaser: | CoBank, ACB
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| Pricing date: | Sept. 15
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| Distribution: | Private placement
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