Alexander & Baldwin expands, extends revolver, amends covenants

By Marisa Wong

Morgantown, W.Va., Sept. 19 – Alexander & Baldwin said it amended its revolving credit and private note shelf facilities.

“These amendments will have the favorable impact of lowering our cost of debt, increasing capacity on our committed revolver by $100 million and providing additional financial flexibility under our financial covenants,” James Mead, chief financial officer of Alexander & Baldwin, said in a press release.

The company amended its revolving credit facility to increase the commitment by $100 million to $450 million, extend the term of the facility to Sept. 15, 2022 and reduce the interest rate spread.

Bank of America NA is administrative agent, First Hawaiian Bank is syndication agent, and American AgCredit, PCA, U.S. Bank NA and Wells Fargo Bank, NA are co-documentation agents for the facility.

The company said it also amended some covenants in its private note shelf facility with Prudential Securities to be substantially similar to the amendments to the revolving credit agreement.

The main covenant amendments to the revolver and the Prudential note shelf facility include the following:

• Increasing the maximum ratio of debt to total adjusted asset value to 60% from 50%;

• Increasing the aggregate maximum amount of priority debt at any time to 25% from 20%; and

• Setting the minimum shareholders’ equity amount to be about $850.6 million plus 75% of the net proceeds received from equity issuances, less non-recurring costs related to the company’s REIT conversion.

Alexander & Baldwin is real estate investment trust based in Honolulu.

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