The following table represents the total estimated amortization of MARA:
Estimated
Amortization
(in thousands) Expense
2019 $ 2,006
2020 2,061
2021 2,119
2022 2,183
2023 2,253
2024 and thereafter 60,646
Total $ 71,268
Note 14 — Segment Reporting
Transactions with Related Party — City of Nashua
The following table presents reclassifications out of accumulated other comprehensive income
for the years ended December 31, 2018 and 2017:
Amounts Reclassified Affected Line Item in
Details about Accumulated Other from Accumulated Other the Statement Where
Comprehensive Income Components Comprehensive Income Net Income is Presented
(in thousands) 2018 2017
Gain (loss) on cash flow hedges
Interest rate contracts $ 59 § 77 Interest expense
(24) (31) Tax expense
Amounts reclassified from accumulated
All Bonds Test - Additionally, Pennichuck Water cannot create, issue, incur, assume
or guarantee any new funded debt, if the total outstanding funded debt (“Total Funded
Debt”) will exceed the sum of MARA {as defined in Note | of these consolidated
financial statements) and 85% of its Net Capital Properties (“MARA and Capital
Properties”), and unless net revenues or EBITDA (earnings before interest, taxes,
depreciation and amortization) shall equal or exceed for at least 12 consecutive months
Short-term borrowing activity under Pennichuck Corp.’s Working Capital Line of Credit for
the years ended December 31, 2018 and 2017 was:
(in thousands)
Established line as of December 31, $
Maximum amount outstanding during period
Average amount outstanding during period
Amount outstanding as of December 31,
Weighted average interest rate during period
Interest rate as of December 3 I,
2018 2017
4,000 $ 6,000
5,981 5,574
1,701 228
361 5,574
3.45% 3.01%
4.27% 3.10%
Rate Covenant Test - If during any fiscal year, the EBITDA of Pennichuck Water
shall not equal at least 1.1 times all amounts paid or required to be paid during that year
(“Amounts Paid’), then the Company shall undertake reasonable efforts to initiate a
rate-making proceeding with the NH Public Utilities Commission, to rectify this
coverage requirement in the succeeding fiscal years. Thereby, the ratio of EBITDA to
Amounts Paid must be equal to or greater than 1.1; as of December 31, 2018 and 2017,
The aggregate principal payment requirements subsequent to December 31, 2018 are as
follows:
(in thousands) Amount
2019 $ 6,019
2020 6,372
2021 8,660
2022 6,561
2023 7,859
2024 and thereafter 175,117
Total $ 210,588
Note 10 — Long-Term Debt
Long-term debt as of December 31, 2018 and 2017 consisted of the following:
{in thousands)
Unsecured note payable to City of Nashua, 5.75%,
due 12/25/2041
Unsecured senior note payabJe due to an insurance company
7.40%, due March 1, 2021
The Company has accumulated New Hampshire net operating losses. The New Hampshire tax
benefit of the cumulative net operating loss is approximately $1.1 million which begins to
expire in 2022, and is included in deferred income taxes in the Consolidated Balance Sheet as
of December 31, 2018.
As of December 31, 2018 and 2017, it is estimated that approximately $476,000 and $476,000,
respectively, of cumulative federal alternative minimum tax credits may be carried forward
indefinitely as a credit against our regular tax liability.
