The York Water Company announced that it has entered into Note Purchase Agreement with certain institutional investors for the aggregate principal amount of $40 million on February 27, 2024. The company issued 5.67% Senior Notes due February 27, 2054. The private placement of the Notes is exempt from registration under the Securities Act of 1933, as amended.

Interest on the Notes will be payable semi-annually on August 27 and February 27 of each year. The Notes will be unsecured and unsubordinated obligations of the Company, ranking pari passu in all respects with the Company?s existing and future unsecured and unsubordinated indebtedness. The Note Purchase Agreement provides that if any subsidiary of the Company guarantees or otherwise becomes liable for the Company?s obligations under a material credit facility, the subsidiary will provide a guaranty of payment of the Notes and compliance with the Note Purchase Agreement.

The Notes are callable by the Company at any time, in whole or in part, at a price equal to the principal amount of the Notes to be prepaid, plus the make-whole amount determined for the prepayment date with respect to such principal amount. The make-whole amount is the excess, if any, of the discounted value of the remaining scheduled payments with respect to the called principal of the Notes over the amount of such called principal, such discounted value to be determined using a discount factor equal to the yield on the U.S. Treasury obligation having a final maturity corresponding to the remaining average life of the called principal of the Notes plus 50 basis points. A t any time on or after August 27, 2053 the Company may, at its option, prepay all or any part of the Notes at 100% of the principal amount, together with accrued interest to the prepayment date.

If a change in control occurs, the Company must offer to prepay the Notes at par plus accrued interest, but without any make-whole amount or other premium.