12.
Lines of Credit
In December of 2020, the Company’s existing Working Capital Line of Credit (WCLOC) and
Pennichuck Water‘s FALOC were renewed. The WCLOC was extended and renewed for an
additional year and a half, expiring on June 30, 2022, whereas the FALOC was extended and
renewed for an additional two and a half years, expiring on June 30, 2023. Additionally, as a
part of the renewal and extension of the FALOC, the capacity of that facility was increased
from $10 million to $12 million, while the Company’s WCLOC remains at $4 million.
Pennichuck East’s Fixed Asset Line of Credit (PEU FALOC) was renewed and extended for an
additional three years on November 24, 2020, expiring on September 30, 2023, at its current
facility level of $3 million. The two Fixed Asset Lines of Credit (FALOC and PEU FALOC) are
used to fund construction work in progress on capital projects, which will be refinanced into
long-term term loan obligations or issued bond indebtedness, annually.
Short-term borrowing activity under the Company’s WCLOC for the years ended
December 31, 2021 and 2020 was:
(in thousands) 2621 2020
Established line as of December 31, S 4,000 § 4,000
Maximum amount outstanding during period 2,312 3,006
Average amount outstanding during period 942 1,354
Amount outstanding as of December 31, - 624
Weighted average interest rate during period 1.88% 2.47%
interest rate as of December 31, 1.84% 1.90%
Short-term borrowing activity under Pennichuck Water’s FALOC for the years ended
December 31, 2021 and 2020 was:
(in thousands) 2021 2020
Established line as of December 31, S$ 12,000 S 12,000
Maximum amount outstanding during period 5,851 7,223
Average amount outstanding during period 3,775 3,610
Amount outstanding as of December 31, 5,851 4,550
Weighted average interest rate during period 1.88% 2.80%
Interest rate as of December 31, 1.84% 1.90%
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