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DEBT | 12 Months Ended
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Dec. 31, 2011
DEBT [Abstract] |
DEBT | NOTE 6 DEBT At December 31, 2011, 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, 2011, there was $28.3 million of available funds under this line of credit. The interest rate for borrowings under this line is the London Interbank Offered Rate, or LIBOR, plus 1.00%. 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 31, 2012 or any date on which Citizens demands payment. At December 31, 2011, 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, 2011, there were no borrowings under this line of credit. The interest rate for borrowings under this line is LIBOR plus 1.50%. The term of this line of credit expires on January 16, 2013. On July 20, 2011, the Company completed the sale of 804,290 shares of its Class A Stock. The net proceeds (after deducting underwriting discounts and commissions and offering expenses) of approximately $14.1 million were used to fund a paid-in capital contribution in the same amount to Artesian Water. Artesian Water used the paid-in capital contribution to repay short-term borrowings (including borrowings incurred under our line of credit with Citizens that is available to all of our subsidiaries) incurred primarily to finance expenses associated with its construction program, including investment in utility plant and equipment, and to fund capital expenditures and other general corporate purposes. On August 15, 2011, the Company completed the sale of an additional 84,000 shares of its Class A Stock, in accordance with the option granted to the underwriters to cover over-allotments associated with our July 2011 stock offering. The net proceeds of approximately $1.5 million were used to fund a paid-in capital contribution in the same amount to Artesian Water as noted above. Pursuant to the Termination Agreement between Artesian Resources and Darin A. Lockwood signed on August 6, 2010, Artesian Resources purchased the 75-acre parcel of land, previously purchased by Darin A. Lockwood on July 1, 2008, for the operation of the wastewater facility known as the Northern Sussex Regional Water Recharge Complex, or NSRWRC. The Company purchased the land (with a carrying value of $5.2 million) and all engineering and design work (with a carrying value of $2.7 million) by paying off the $7.9 million remaining balance of the NSRWRC’s construction loan with a financial institution secured by the 75-acre parcel that was previously guaranteed by the Company. There is no other security pledged for the 75-acre parcel of land. 52 Table of Contents Long-term debt consists of:
|  | December 31, |
In thousands |  | 2011 |  |  | 2010 |
First mortgage bonds |  |  |  |  |  |
Series O, 8.17%, due December 29, 2020 |  | $ | 20,000 |  |  | $ | 20,000 |
Series P, 6.58%, due January 31, 2018 |  |  | 25,000 |  |  |  | 25,000 |
Series Q, 4.75%, due December 1, 2043 |  |  | 15,400 |  |  |  | 15,400 |
Series R, 5.96%, due December 31, 2028 |  |  | 25,000 |  |  |  | 25,000 |
Series S, 6.73%, due December 31, 2033 |  |  | 13,200 |  |  |  | 13,800 |
|  |  | 98,600 |  |  |  | 99,200 |
State revolving fund loans |  |  |  |  |  |  |  |
4.48%, due August 1, 2021 |  |  | 2,624 |  |  |  | 2,827 |
3.57%, due September 1, 2023 |  |  | 1,010 |  |  |  | 1,076 |
3.64%, due May 1, 2025 |  |  | 1,667 |  |  |  | 1,761 |
3.41%, due February 1, 2031 |  |  | 2,993 |  |  |  | 581 |
3.40%, due July 1, 2032 |  |  | 783 |  |  |  | --- |
|  |  | 9,077 |  |  |  | 6,245 |
Notes Payable |  |  |  |  |  |  |  |
Promissory Note, variable interest, due August 1, 2012 |  |  | 580 |  |  |  | 1,161 |
|  |  | 580 |  |  |  | 1,161 |
Sub-total |  |  | 108,257 |  |  |  | 106,606 |
Less: current maturities (principal amount) |  |  | 1,718 |  |  |  | 1,545 |
Total long-term debt |  | $ | 106,539 |  |  | $ | 105,061 |
Payments of principal amounts due during the next five years and thereafter: |
In thousands |  | 2012 |  |  | 2013 |  |  | 2014 |  |  | 2015 |  |  | 2016 |  |  | Thereafter |
First Mortgage bonds |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 600 |  |  | $ | 95,600 |
State revolving fund loans |  |  | 538 |  |  |  | 535 |  |  |  | 556 |  |  |  | 578 |  |  |  | 601 |  |  |  | 6,269 |
Notes Payable |  |  | 580 |  |  |  | --- |  |  |  | --- |  |  |  | --- |  |  |  | --- |  |  |  | --- |
Total payments |  | $ | 1,718 |  |  | $ | 1,135 |  |  | $ | 1,156 |  |  | $ | 1,178 |  |  | $ | 1,201 |  |  | $ | 101,869 |
53 Table of Contents

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02.19,20,22) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 129 -Paragraph 2, 4 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 02 -Paragraph 19, 20, 22 -Article 5 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644 + Details
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