Hawaiian Electric restates credit facilities for extended revolvers

By Marisa Wong

Morgantown, W.Va., July 3 – 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 June 30 to amend and restate their original credit agreements dated May 7, 2010, according to an 8-K filing with the Securities and Exchange Commission.

The facilities were jointly syndicated with the lending group reduced from nine banks to eight banks through the removal of two banks and addition of a new bank. JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC acted as joint lead arrangers and joint bookrunners, with JPMorgan Chase Bank as administrative agent.

The $150 million HEI restated facility extended the term of the facility to June 30, 2022.

The $200 million Hawaiian Electric restated facility has an initial term that expires on June 29, 2018; its term will extend to June 30, 2022 if and when approved by the Public Utilities Commission of the State of Hawaii during the initial term.

Under each facility, based on each respective company’s current long-term credit ratings, borrowings bear interest at Libor plus 137.5 basis points, and the commitment fee is 20 bps.

The facilities contain provisions for pricing adjustments in the event of a long-term ratings change.

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 $800,000 and Hawaiian Electric had $1.5 million of 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.