DEBT

12 Months Ended

Dec. 31, 2024

DEBT [Abstract]

DEBT

NOTE 8 – DEBT

At December 31, 2024, Artesian Resources had a $40 million line of credit with Citizens Bank, or Citizens, which is available to all subsidiaries of Artesian Resources.  As of December 31, 2024, there was $40.0 million of available funds under this line of credit.  The interest rate is a one month Daily Secured Overnight Financing Rate, or SOFR plus 10 basis points, or Term SOFR, plus an applicable margin of 0.85%, which was increased to 1.10% effective August 3, 2023.  Term SOFR cannot be less than 0.00%. This is a demand line of credit and therefore the financial institution may demand payment for any outstanding amounts at any time.  The term of this line of credit expires on the earlier of May 19, 2025 or any date on which Citizens demands payment.  The Company expects to renew this line of credit.

At December 31, 2024, Artesian Water had a $20 million line of credit with CoBank, ACB, or CoBank, that allows for the financing of operations for Artesian Water, with up to $10 million of this line available for the operations of Artesian Water Maryland.  As of December 31, 2024, there was $20.0 million of available funds under this line of credit.  The interest rate for borrowings under this line is either a daily SOFR rate plus 1.45% option or a term SOFR rate plus 1.45% option that is locked in for either one or three months. The term of this line of credit expires on October 31, 2025. Artesian Water expects to renew this line of credit.

CoBank may make an annual patronage refund based on the average line of credit and loan volume outstanding in the prior year. The $20 million line of credit, the First Mortgage Bonds and the promissory note are with CoBank.  Patronage refunds earned by Artesian in 2024 and 2023 were $1.6 million and $1.6 million, respectively.

The weighted average interest rate on the lines of credit discussed above paid by the Company was 6.47% for the year ended December 31, 2024.  These lines of credit, as well as the long-term debt obligations shown below, require us to abide by certain financial covenants and ratios.  As of December 31, 2024, we were in compliance with these  financial covenants.

Long-term debt consists of:

	December 31,
In thousands	2024		2023
First mortgage bonds
Series R, 5.96%, due December 31, 2028	$	25,000	$	25,000
Series S, 4.45%, due December 31, 2033		5,400		6,000
Series T, 4.24%, due December 20, 2036		40,000		40,000
Series U, 4.71%, due January 31, 2038		25,000		25,000
Series V, 4.42%, due October 31, 2049		30,000		30,000
Series W, 4.43%, due April 30, 2047		30,000		30,000
		155,400		156,000
State revolving fund loans
3.57%, due September 1, 2023		—		—
3.64%, due May 1, 2025		77		228
3.41%, due February 1, 2031		1,246		1,415
3.40%, due July 1, 2032		1,296		1,445
1.187%, due November 1, 2041		559		588
1.187%, due November 1, 2041		655		690
1.187%, due November 1, 2041		1,021		1,075
2.00%, due February 1, 2043		793		828
2.00%, due February 1, 2043		1,095		1,143
2.00%, due June 1, 2043		960		1,002
2.00%, due June 1, 2043		978		1,022
2.00%, due February 1, 2044		3,086		2,696
2.00%, due January 1, 2043		978		1,000
		12,744		13,132
Notes Payable
Promissory Note, 5.12%, due December 30, 2028	$	9,590	$	10,155
Asset Purchase, 2.00%, due May 26, 2027		942		1,255
		10,532		11,410
Sub-total		178,676		180,542
Less: current maturities (principal amount)		2,167		2,235
Total long-term debt	$	176,509	$	178,307

Payments of principal amounts due during the next five years and thereafter:

In thousands	2025		2026		2027		2028		2029		Thereafter
First Mortgage bonds	$	600	$	600	$	600	$	25,600	$	600	$	127,400
State revolving fund loans		773		816		836		857		878		8,584
Asset Purchase-Contractual Obligation		314		314		314		—		—		—
Promissory note		480		505		532		559		590		6,924
Total payments	$	2,167	$	2,235	$	2,282	$	27,016	$	2,068	$	142,908

Substantially all of Artesian Water’s utility plant is pledged as security for our First Mortgage Bonds.  As of December 31, 2024, no other water utility plant has been pledged as security for loans.  Two parcels of land in Artesian Wastewater are pledged as security for the promissory note.