Connecticut Water Service, Inc. (OTCMKTS:CTWSO) Files An 8-K Entry into a Material Definitive Agreement

ME Staff 8-k
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Connecticut Water Service, Inc. (OTCMKTS:CTWSO) Files An 8-K Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement

Entry into New Term Loan for Maine Water Company
As previously reported, on December 1, 2012, the Maine Water
Company, a Maine corporation (Maine Water), and CoBank, ACB, a
federally chartered instrumentality of the United States (CoBank)
entered into that certain Amended and Restated Master Loan
Agreement, as amended on December 22, 2014 (the Agreement). Maine
Water is an operating water utility subsidiary of Connecticut
Water Service, Inc., a Connecticut corporation (CWS), the
registrant.
to the Agreement, Maine Water has previously delivered to CoBank
two separate Promissory Note and Single Advance Term Loan
Supplements, dated December 1, 2012 and December 22, 2014 (the
First and Second Promissory Notes), respectively, as follows:
Promissory Note
Principal Amount
Maturity Date
First Promissory Note and Single Advance Term Loan
Supplement No. RI0042T02
$1,965,000
Dec. 15, 2017
Second Promissory Note and Single Advance Term Loan
Supplement No. RI0042T03
$4,500,000
Dec. 20, 2024
On January 10, 2017, Maine Water executed and delivered to CoBank
a new Promissory Note and Single Advance Term Loan Supplement,
dated January 10, 2017 (the Third Promissory Note). On the terms
and subject to the conditions set forth in the Third Promissory
Note issued to the Agreement, CoBank agreed to make an unsecured
loan (the Loan) to Maine Water in the principal amount of
$5,000,000, as follows:
Promissory Note
Principal Amount
Maturity Date
Third Promissory Note and Single Advance Term Loan
Supplement No. RI0042T04
$5,000,000
Dec. 30, 2026
Under the Third Promissory Note, Maine Water will pay interest on
the Loan in accordance with either of the following interest rate
options, as selected periodically by Maine Water: (1) at a weekly
quoted variable rate, a rate per annum equal to the rate of
interest established by CoBank on the first business day of each
week; or (2) at a fixed rate per annum to be quoted by CoBank in
its sole discretion in each instance for periods of 180 days or
more. Interest shall be calculated on the actual number of days
the Loan is outstanding on the basis of a
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year consisting of 360 days. Maine Water has selected a fixed
rate of 4.180% per year through the maturity date of the Loan.
Maine Water intends to use the proceeds of the above described
Loan from CoBank to refinance existing debt and to finance
certain capital expenditures.
The above summary of the material terms of the Agreement and the
Third Promissory Note is qualified in its entirety by reference
to: (1) the Agreement, dated as of December 1, 2012 and amended
as of December 22, 2014, and (2) the Third Promissory Note dated
as of January 10, 2017. The Agreement, as amended, has previously
been filed. The Third Promissory Note is attached hereto as
Exhibit 10.3>and is hereby incorporated herein by reference.
Item 2.03
Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant.
The information set forth in Item 1.01 is incorporated herein by
reference in response to this Item 2.03.
Item 9.01 Financial Statements and Exhibits
The following documents are filed herewith as exhibits hereto:
(d) Exhibits
10.1
Amended and Restated Master Loan Agreement between the
Maine Water Company and CoBank, ACB, dated December 1,
2012 and effective as of December 6, 2012, incorporated
by reference from Exhibit 10.1 to CWSs Current Report
on Form 8-K filed on December 7, 2012.
10.2
Amendment to Amended and Restated Master Loan Agreement
by and between the Maine Water Company and CoBank, ACB,
dated as of December 22, 2014, incorporated by
reference from Exhibit 10.2 to CWSs Current Report on
Form 8-K filed on December 30, 2014.
10.3
Promissory Note and Single Advance Term Loan Supplement
between the Maine Water Company and CoBank, ACB, dated
as of January 10, 2017, is filed herewith.
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About Connecticut Water Service, Inc. (OTCMKTS:CTWSO)

Connecticut Water Service, Inc. is a non-operating holding company. The Company’s income is derived from the earnings of its subsidiary companies, including The Connecticut Water Company (Connecticut Water), The Maine Water Company (Maine Water), New England Water Utility Services, Inc. (NEWUS) and Chester Realty Company (Chester Realty). It operates through three segments: Water Operations, Real Estate Transactions, and Services and Rentals. The Water Operations segment consists of its regulated water activities to supply public drinking water to customers. The Real Estate Transactions segment involves the sale or donation for income tax benefits of its real estate holdings. The Services and Rentals segment provides contracted services to water and wastewater utilities and other clients, and also leases certain of the Company’s properties to third parties through unregulated companies in the State of Connecticut and through Maine Water in the State of Maine.

Connecticut Water Service, Inc. (OTCMKTS:CTWSO) Recent Trading Information

Connecticut Water Service, Inc. (OTCMKTS:CTWSO) closed its last trading session 00.00 at 16.10 with shares trading hands.