York Water Co Enters Material Agreement, New Financial Obligation

TL;DR

**York Water Co just took on new debt or a major contract, watch for details on its financial health!**

AI Summary

The York Water Company filed an 8-K on February 28, 2024, reporting an event on February 27, 2024, concerning the entry into a material definitive agreement and the creation of a direct financial obligation. The filing indicates the company, based in York, Pennsylvania, with IRS number 23-1242500, has undertaken a new financial commitment. This 8-K also includes financial statements and exhibits related to these new obligations.

Why It Matters

This filing signals new financial commitments for The York Water Company, which could impact its balance sheet and future operational flexibility. Investors should monitor the details of these agreements to assess potential risks and opportunities.

Risk Assessment

Risk Level: medium — The filing indicates the creation of a direct financial obligation, which could increase the company's debt burden or introduce new liabilities.

Key Players & Entities

• THE YORK WATER COMPANY (company) — Registrant
• February 27, 2024 (date) — Date of earliest event reported
• February 28, 2024 (date) — Filing date
• 23-1242500 (dollar_amount) — IRS Employer Identification No.
• York, Pennsylvania (company) — Principal executive offices location

FAQ

Key Financial Figures

• $40 million — ") relating to the private placement of $40 million aggregate principal amount of the Compa
• $1,500,000 — chases shall not exceed the sum of ( 1) $1,500,000 plus (2) earned surplus of the Company
• $5 m — events regarding indebtedness of least $5 million, certain events of bankruptcy or
• $5 million — yment of money aggregating in excess of $5 million which are not stayed or discharged, and

Filing Documents

• ef20022477_8k.htm (8-K) — 34KB
• ef20022477_ex10-1.htm (EX-10.1) — 513KB
• image00002.jpg (GRAPHIC) — 2KB
• 0001140361-24-009956.txt ( ) — 773KB
• yorw-20240227.xsd (EX-101.SCH) — 4KB
• yorw-20240227_lab.xml (EX-101.LAB) — 21KB
• yorw-20240227_pre.xml (EX-101.PRE) — 16KB
• ef20022477_8k_htm.xml (XML) — 4KB

01

Item 1.01 Entry into a Material Definitive Agreement. The disclosure required by this item is included in Item 2.03 below and incorporated herein by reference.

03

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. On February 27, 2024, The York Water Company (the "Company") entered into a Note Purchase Agreement (the "Note Purchase Agreement") with certain institutional investors (the "Note Purchasers") relating to the private placement of $40 million aggregate principal amount of the Company's 5.67% Senior Notes due February 27, 2054 (the "Notes"). 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 (as defined), the subsidiary will provide a guaranty of payment of the Notes and compliance with the Note Purchase Agreement. The net proceeds from the sale of the Notes will be used to refinance short-term debt incurred by the Company as interim financing for various capital projects of the Company , and for general corporate purposes . The pricing of the Notes occurred on February 1, 2024 and funding occurred on February 27, 2024. The Note Purchase Agreement includes customary covenants for note purchase agreements of this type, including, among others, covenants relating to compliance with laws, maintenance of insurance, maintenance of properties, payment of taxes, maintenance of corporate existence, maintenance of books and records, transactions with affiliates, merger and consolidation, line of business, anti-terrorism sanctions and liens. The Note Purchase Agreement also contains certain restrictive and financial covenants, specifying,

Financial Statements and Exhibits

Financial Statements and Exhibits. (d) Exhibits . 10.1 Form of Note Purchase Agreement dated February 27, 2024 between the Company and the purchasers listed as signatories thereto. THE YORK WATER COMPANY

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. THE YORK WATER COMPANY /s/ Matthew E. Poff Date: February 28, 2024 Matthew E. Poff Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR