Board Of Aldermen

Note 15 — Rate Cases

Pennichuck Water Works, Inc.

(continued)

(continued)

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