By Lisa Kerner
Charlotte, N.C., March 28 - Hawaiian Electric Industries, Inc. entered into a master note purchase agreement to sell $125 million of senior notes to Prudential Insurance Co. of America, ING Investment Management LLC, Nationwide Life Insurance Co., Modern Woodmen of America, CUNA Mutual Insurance Society, Country Life Insurance Co., Farm Bureau Life Insurance Co. and their affiliates, according to an 8-K filing with the Securities and Exchange Commission.
The series 2011A notes were issued in two tranches:
• $75 million of 4.41% notes due March 24, 2016; and
• $50 million of 5.67% notes due March 24, 2021.
The notes have a make-whole call at Treasuries plus 50 basis points.
The agreement requires Hawaiian Electric to maintain an unconsolidated capitalization ratio of more than 50% and a consolidated net worth of at least $975 million.
Proceeds will be used to refinance $50 million of the company's 4.23% medium-term notes, series D, that matured on March 15, 2011 and to refinance a portion of the $100 million of 6.141% medium-term notes, series D that will mature on Aug. 15, 2011.
The company said its unconsolidated long-term debt is expected to be $25 million lower after Aug. 15 when compared to Dec. 31, 2010.
Based in Honolulu, Hawaii, Hawaiian Electric is a holding company with its principal subsidiaries engaged in electric utility, banking and other businesses.
| Issuer: | Hawaiian Electric Industries, Inc.
|
| Issue: | Series 2011A senior notes
|
| Amount: | $125 million
|
| Call option: | Make-whole at Treasuries plus 50 bps
|
| Settlement date: | March 24
|
| Distribution: | Private placement
|
| Purchasers: | Prudential Insurance Co. of America, ING Investment Management LLC, Nationwide Life Insurance Co., Modern Woodmen of America, CUNA Mutual Insurance Society, Country Life Insurance Co., Farm Bureau Life Insurance Co. and their affiliates
|
|
|
| Tranche 1
|
| Amount: | $75 million
|
| Maturity: | March 24, 2016
|
| Coupon: | 4.41%
|
|
|
| Tranche 2
|
| Amount: | $75 million
|
| Maturity: | March 24, 2021
|
| Coupon: | 5.67%
|
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