Investment Banking - Artesian Resources Corporation

Transactions | Infrastructure/Environmental/Water

Client: Artesian Resources Corporation
Industry: Infrastructure/Environmental/Water
Transaction Type: Common Stock Offering
Role: Co-Manager

  • Artesian Resources Corporation (NASDAQ:ARTNA) operates as the holding company of eight wholly-owned subsidiaries offering water, wastewater and engineering services on the Delmarva Peninsula. Artesian Water Company, the principal subsidiary, is the oldest and largest investor-owned public water utility on the Delmarva Peninsula, and has been providing water service since 1905. Artesian Water distributes and sells water to residential, commercial, industrial, governmental, municipal and utility customers.
  • Artesian Resources Corporation (Artesian) undertook an underwritten public offering of approximately $15 million of its Class A Non-Voting Common Stock.
  • Artesian Water’s intent was to use the paid-in capital contribution to repay short-term borrowings incurred primarily to finance expenses associated with its construction program and to fund capital expenditures and other general corporate purposes.
  • These proceeds were expected to reduce Artesian Water’s debt to total capitalization ratio. In addition, Artesian was considering utilizing proceeds from this offering to adjust capitalization ratios in its other regulated subsidiaries.
  • The firm served as a co-manager in the transaction.