Webster replaced as CT Water lender

Connecticut Water Service Inc. has replaced lender Webster Bank with three banks that will increase its ability to finance its $26.4 million capital spending program.

Clinton-based water utility reported in a regulatory filing today that its previous $6 million credit line with Webster expired June 30 and was replaced with a one-year borrowing agreement with CoBank, a Denver lending cooperative, for loans up to $15 million.

Connecticut Water said the interest rate on its CoBank borrowings would be the London Interbank Offered Rate (LIBOR), plus 1.75 percent.

Meantime, the utility said its board of directors has authorized the company to increase its borrowing capacity to $40 million.

The utility said it expects to sign borrowing agreements with two more unidentified lenders during the third quarter.