By Lisa Kerner
Charlotte, N.C., Oct. 7 - Hawaiian Electric Co. Inc. agreed to privately place $140 million of senior notes on Oct. 3, according to an 8-K filing with the Securities and Exchange Commission.
The notes will be issued as follows:
• $40 million of 4.45% series 2013A notes due Dec. 1, 2022;
• $50 million of 4.84% series 2013B notes due Oct. 1, 2027; and
• $50 million of 5.65% series 2013C notes due Oct. 1, 2043.
Hawaiian Electric's subsidiary Maui Electric Co., Ltd. entered into a separate note purchase agreement to place $40 million of notes as follows:
• $20 million of 4.84% series 2013A notes due Oct. 1, 2027; and
• $20 million of 5.65% series 2013B notes Oct. 1, 2043.
Also, Hawaiian Electric's subsidiary Hawaii Electric Light Co., Inc. entered into a separate note purchase agreement to place $56 million of notes as follows:
• $14 million of 3.83% series 2013A notes due July 1, 2020;
• $12 million of 4.45% series 2013B notes due Dec. 1, 2022; and
• $30 million of 4.84% series 2013C notes due Oct. 1, 2027.
The proceeds of Hawaiian Electric's $50 million series 2013C notes and Maui Electric's $20 million series 2013B notes will be used by the respective companies to finance their capital expenditures and/or for the reimbursement of funds used for the payment of capital expenditures, the filing stated.
Maui Electric will also use its proceeds to finance and refinance its capital expenditures and to redeem, prior to their stated maturity, the loans to the company of the proceeds of one series of special purpose revenue bonds issued by the Department of Budget and Finance of the State of Hawaii, the SEC filing stated.
Hawaiian Electric Light will use its proceeds to redeem, prior to their stated maturity, the loans to the company of the proceeds of three series of special purpose revenue bonds issued by Hawaii's Department of Budget and Finance.
The notes have a make-whole call at Treasuries plus 50 basis points.
Purchasers include ING USA Annuity and Life Insurance Co., Reliastar Life Insurance Co., Security Life of Denver Insurance Co., Lincoln National Life Insurance Co., Pacific Life Insurance Co., Principal Life Insurance Co., Cobank ACB and PHL Variable Insurance Co.
Based in Honolulu, Hawaiian Electric is a holding company with its principal subsidiaries engaged in electric utility, banking and other businesses.
| Issuers: | Hawaiian Electric Co., Inc., Maui Electric Co., Ltd., Hawaii Electric Light Co., Inc.
|
| Issue: | Senior notes
|
| Amount: | $236 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | Oct. 3
|
| Distribution: | Private placement
|
| Purchasers: | ING USA Annuity and Life Insurance Co., Reliastar Life Insurance Co., Security Life of Denver Insurance Co., Lincoln National Life Insurance Co., Pacific Life Insurance Co., Principal Life Insurance Co., Cobank ACB and PHL Variable Insurance Co.
|
|
|
| Hawaiian Electric notes
|
| Series 2013A
|
| Amount: | $40 million
|
| Coupon: | 4.45%
|
| Maturity: | Dec. 1, 2022
|
|
|
| Series 2013B
|
| Amount: | $50 million
|
| Coupon: | 4.84%
|
| Maturity: | Oct. 1, 2027
|
|
|
| Series 2013C
|
| Amount: | $50 million
|
| Coupon: | 5.65%
|
| Maturity: | Oct. 1, 2043
|
|
|
| Maui Electric notes
|
| Series 2013A
|
| Amount: | $20 million
|
| Coupon: | 4.84%
|
| Maturity: | Oct. 1, 2027
|
|
|
| Series 2013B
|
| Amount: | $20 million
|
| Coupon: | 5.65%
|
| Maturity: | Oct. 1, 2043
|
|
|
| Hawaii Electric Light
|
| Series 2013A
|
| Amount: | $14 million
|
| Coupon: | 3.83%
|
| Maturity: | July 1, 2020
|
|
|
| Series 2013B
|
| Amount: | $12 million
|
| Coupon: | 4.45%
|
| Maturity: | Dec. 1, 2022
|
|
|
| Series 2013C
|
| Amount: | $30 million
|
| Coupon: | 4.84%
|
| Maturity: | Oct. 1, 2027
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
