Penatecheck Water Special Committee Meeting - August 31, 2026

The Penatecheck Water Special Committee met on August 31, 2026 at 7:00 p.m. in the Aldermanic Chamber. All five committee members were present, establishing a quorum. Representatives from Penatecheck Corporation (Pen Corp) attended. The meeting focused on a resolution to renew the corporation's working capital line of credit with TD Bank.

Communications

• Two communications were accepted and filed without objection: a quarterly shareholder report from Pen Corp CEO for the quarter ended March 31, 2026, and a communication from the Office of Corporation Counsel regarding Resolution R25054 (a prior related item).

New Business – Resolution R26054

• George Torres, representing Pen Corp, presented a term sheet from TD Bank for the renewal of Pen Corp’s existing $4 million working capital line of credit. The line has been in place since 2014 in varying amounts.
• The new agreement is a three-year renewal (September 2026 through September 2029), extended from the previous two-year terms, reducing the frequency of committee appearances.
• The line of credit has identical terms to the prior facility: a floating interest rate based on the SOFR (Secured Overnight Financing Rate) plus 1.75%. Mr. Torres estimated the current rate at approximately 5%.
• The line of credit acts as a backstop for Pen Corp's subsidiaries: Pen Waterworks, Penn Water Service, and Pencheck Waterworks. It covers operational expenses and timing gaps, automatically drawing and repaying as cash flow fluctuates. It does not require regulatory approval beyond the committee and Board of Aldermen.

Key Outcomes

• The committee voted unanimously (all ayes) to approve Resolution R26054, authorizing Pen Corp to renew and extend the line of credit with TD Bank.
• The meeting adjourned at 7:06 p.m.