MERRIMACK, N.H., Sept. 19, 2007 (PRIME NEWSWIRE) -- Pennichuck Corporation (Nasdaq:PNNW) today announced that its Pittsfield Aqueduct Company subsidiary ("Pittsfield") has arranged a $2.5 million financing pursuant to the New Hampshire State Drinking Water Revolving Loan Fund (the "SRF"). Proceeds will be utilized by Pittsfield over the next two years to fund new water utility infrastructure projects within its recently acquired systems serving Barnstead and North Conway, New Hampshire. Such projects include distribution systems, zone booster stations, water treatment facilities, water storage facilities, and well supplies.
The State of New Hampshire established the SRF, which is administered by its Department of Environmental Services, for financing water pollution control and drinking water improvement projects within the State. Inclusive of this transaction, Pennichuck has arranged seven SRF loans aggregating about $7 million among its Pennichuck Water, Pennichuck East, and Pittsfield regulated water utility subsidiaries.
SRF loans represent a low cost source of debt financing for water utility infrastructure projects. Borrowings under SRF loans accrue interest at the rate of 1% during construction. Once the project is placed into service, the SRF loan converts to a twenty-year (monthly amortizing) repayment period at a fixed rate of interest equal to 80% of the rate for high quality municipal bonds. The benefits of low cost SRF loans are completely passed along to customers.
Pennichuck Corporation is a holding company involved principally in the supply and distribution of potable water in southern and central New Hampshire through its three regulated water utilities. Its non-regulated, water-related activities include operations and maintenance contracts with municipalities and private entities in New Hampshire and Massachusetts. The Company's real estate operations are involved in the ownership, management and development of real estate in the greater Nashua, New Hampshire area.
Pennichuck Corporation's common stock trades on the Nasdaq Stock Exchange under the symbol "PNNW." The Company's website is at www.pennichuck.com.
This news release may contain certain forward-looking statements with respect to the financial condition, results of operations and business of Pennichuck Corporation. Forward-looking statements are based on current information and expectations available to management at the time the statements are made, and are subject to various factors, risks and uncertainties that could cause actual results to differ materially from those expressed or implied by such forward-looking statements. These factors include, but are not limited to, timing and results of eminent domain proceedings before the New Hampshire Public Utilities Commission; the impact thereof on consolidated business operations; legislation and/or regulation and accounting factors affecting Pennichuck Corporation's financial condition and results of operations; and, the impact of weather. Investors are encouraged to access Pennichuck Corporation's annual and quarterly periodic reports filed with the Securities and Exchange Commission for financial and business information regarding Pennichuck Corporation, including a more detailed discussion of these and other risks and uncertainties that could affect Pennichuck Corporation's forward-looking statements.