By Lisa Kerner
Charlotte, N.C., Sept. 14 - Hawaiian Electric Co., Inc. entered into a note purchase agreement on Thursday for the private placement of $40 million of 4.53% senior notes, series 2012F, due 2032, according to an 8-K filing with the Securities and Exchange Commission.
Proceeds, together with additional funds provided by the company, will be applied to redeem the $40 million total principal amount of 5.1% series 2002A special purpose revenue bonds issued by the Department of Budget and Finance of the State of Hawaii. The bonds mature in 2032 and have been called for redemption on Sept. 19.
The new notes have a make-whole call option at Treasuries plus 50 basis points.
The note agreement requires Hawaiian Electric and its wholly owned subsidiaries, Maui Electric Co., Ltd. and Hawaii Electric Light Co., Inc., to maintain certain financial ratios consistent with those in the company's existing note agreements dated April 19, 2012.
Hawaiian Electric must not permit its consolidated capitalization ratio to be less than 0.35 to 1.00 as of the end of any fiscal quarter or fiscal year, the filing said.
Purchasers include Connecticut General Life Insurance Co., Life Insurance Co. of America, Provident Life and Casualty Insurance Co., Pacific Life Insurance Co., CMFG Life Insurance Co., Phoenix Life Insurance Co. and Paul Revere Life Insurance Co.
Based in Honolulu, Hawaiian Electric is a holding company with its principal subsidiaries engaged in electric utility, banking and other businesses.
| Issuer: | Hawaiian Electric Co., Inc.
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| Issue: | Senior notes, series 2012F
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| Amount: | $40 million
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| Maturity: | Sept. 1, 2032
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| Coupon: | 4.53%
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| Call option: | Make-whole at Treasuries plus 50 bps
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| Pricing date: | Sept. 13
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| Distribution: | Private placement
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| Purchasers: | Connecticut General Life Insurance Co., Life Insurance Co. of America, Provident Life and Casualty Insurance Co., Pacific Life Insurance Co., CMFG Life Insurance Co., Phoenix Life Insurance Co., Paul Revere Life Insurance Co.
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