Hawaiian Electric restates two credit facilities for extended revolvers

By Wendy Van Sickle

Columbus, Ohio, May 18 – Hawaiian Electric Industries, Inc. (HEI) and subsidiary Hawaiian Electric Co., Inc. (Hawaiian Electric) each entered into an amended and restated revolving unsecured credit agreement on May 14 to amend and restate their amended credit agreements dated June 30, 2017, according to an 8-K filing with the Securities and Exchange Commission.

The facilities were jointly syndicated with the lending group increased to nine banks from eight banks. JPMorgan Chase Bank, NA, BofA Securities, Inc. and U.S. Bank NA acted as joint lead arrangers and joint bookrunners, with JPMorgan Chase Bank as administrative agent and JPMorgan Chase Bank and Bank of America, NA as sustainability structuring agents.

The HEI restated facility was increased to $175 million from $150 million, and the term was extended to May 14, 2026.

The HEI facility bears interest at Libor plus 137.5 basis points and has a commitment fee of 20 bps.

The Hawaiian Electric restated facility remained at $200 million, but the initial term now expires on May 14, 2022; its term will extend to May 14, 2026 if and when approved by the Public Utilities Commission of the State of Hawaii during the initial term.

The Hawaiian Electric facility bears interest at Libor plus 125 bps and has a commitment fee of 17.5 bps.

Additionally, the amended facilities contain provisions for pricing adjustments in the event of a long-term ratings change and contain provisions for a replacement of Libor to SOFR.

Further, the margin and commitment fee of each facility may rise or fall by up to 5 bps and 1 bp, respectively, based on performance against some sustainability-linked metrics.

Proceeds may be used for working capital needs and general corporate purposes but have primarily been used to support the companies’ short-term commercial paper programs.

As of March 31, HEI had $100 million of and Hawaiian Electric had no commercial paper outstanding.

There are currently no outstanding draws under the restated facilities, nor any outstanding letters of credit under the letter-of-credit sub-facilities, the filing noted.

Based in Honolulu, HEI is a holding company with its principal subsidiaries, including Hawaiian Electric, engaged in electric utility, banking and other businesses.

© 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.