Long-Term Debt

12 Months Ended

Dec. 31, 2011

Notes to Finanical Statments [Abstract]

NOTE 7: LONG-TERM DEBT

Long-Term Debt at December 31, consisted of the following:

(in thousands)				2011		2010
The Connecticut Water Company:
Unsecured Water Facilities Revenue Bonds
	5.05	%	1998 Series A, Due 2028	$	9,550	$	9,580
	5.125	%	1998 Series B, Due 2028		7,495		7,530
	4.40	%	2003A Series, Due 2020		8,000		8,000
	5.00	%	2003C Series, Due 2022		14,795		14,795
Var.			2004 Series Variable Rate, Due 2029		12,500		12,500
Var.			2004 Series A, Due 2028		5,000		5,000
Var.			2004 Series B, Due 2028		4,550		4,550
	5.00	%	2005 A Series, Due 2040		14,805		14,885
	5.00	%	2007 A Series, Due 2037		14,570		14,835
	5.10	%	2009 A Series, Due 2039		20,000		20,000
	5.00	%	2011 A Series, Due 2021		23,991		--
Total Long-Term Debt				$	135,256	$	111,675

F-12

Table of Contents

CONNECTICUT WATER SERVICE, INC.

As of December 31, 2011, the Company does not have any principal payments required for years 2012 – 2016.

In December 2011, Connecticut Water borrowed $22.05 million through the issuance of Water Facilities Revenue Bonds by the Connecticut Development Authority (Authority). The Company received approximately $24,000,000 in cash in exchange for the issuance of bonds with an aggregate principal amount of $22,050,000 for a 10-year term and a 5% coupon. The Company recorded a bond premium in connection with this transaction and will amortize that premium over the life of the bond. The proceeds from the sale of the bonds will be used to finance construction and installation of various capital improvements to the Company’s existing water system.

There are no mandatory sinking fund payments required on Connecticut Water’s outstanding Unsecured Water Facilities Revenue Refinancing Bonds. However, certain fixed rate Unsecured Water Facilities Revenue Refinancing Bonds provide for an estate redemption right whereby the estate of deceased bondholders or surviving joint owners may submit bonds to the Trustee for redemption at par, subject to a $25,000 per individual holder and a 3% annual aggregate limitation.

Financial Covenants – The Company is required to comply with certain covenants in connection with various long term loan agreements. The Company was in compliance with all covenants at December 31, 2011.