NOTE 7: LONG-TERM DEBT

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



		2012			2011
Connecticut Water Service, Inc.:
4.09%	Term Loan Note and Supplement A	$	17,337		$	—
The Connecticut Water Company:
Unsecured Water Facilities Revenue Bonds
5.05%	1998 Series A, Due 2028	—			9,550
5.125%	1998 Series B, Due 2028	—			7,495
4.40%	2003A Series, Due 2020	—			8,000
5.00%	2003C Series, Due 2022	—			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
5.00%	2007 A Series, Due 2037	14,550			14,570
5.10%	2009 A Series, Due 2039	19,950			20,000
5.00%	2011 A Series, Due 2021	23,797			23,991
3.16%	CoBank Note Payable, Due 2020	8,000			—
3.51%	CoBank Note Payable, Due 2022	14,795			—
4.29%	CoBank Note Payable, Due 2028	17,020			—
4.72%	CoBank Note Payable, Due 2032	14,795			—
Total The Connecticut Water Company		134,957			135,256
The Maine Water Company:
8.95%	1994 Series G, Due 2024	9,000			—
2.68%	1999 Series J, Due 2019	524			—
0.00%	2001 Series K, Due 2031	780			—
2.58%	2002 Series L, Due 2022	98			—
1.53%	2003 Series M, Due 2023	421			—
1.73%	2004 Series N, Due 2024	471			—
0.00%	2004 Series O, Due 2034	147			—
1.76%	2006 Series P, Due 2026	471			—
1.57%	2009 Series R, Due 2029	247			—
0.00%	2009 Series S, Due 2029	762			—
0.00%	2009 Series T, Due 2029	2,137			—
0.00%	2012 Series U, Due 2042	177			—
2.52%	CoBank Note Payable, Due 2017	1,965			—
Total The Maine Water Company		17,200			—
The Biddeford & Saco Water Company
6.45%	Series M, Due 2014	2,700			—
7.72%	Series L, Due 2018	2,250			—
2.40%	Series N, Due 2022	1,297			—
1.86%	Series O, Due 2025	862			—
2.23%	Series P, Due 2028	1,354			—
Various	Various Capital Leases	126			—
Total The Biddeford & Saco Water Company		8,589			—
Add: Acquisition Fair Value Adjustment		1,696			—
Less: Current Portion		(1,304		)	—
Total Long-Term Debt		$	178,475		$	135,256

The Company's required principal payments for the years 2013 through 2017 are as follows:



2013	$	1,304
2014	$	4,103
2015	$	2,442
2016	$	2,486
2017	$	4,501

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 with a maturity date of December 20, 2021 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 most restrictive of these covenants is to maintain a consolidated debt to capitalization ratio of not more than 60%. The Company is in compliance with all covenants at December 31, 2012.