8 · Long-term debt



December 31	2016			2015
(dollars in thousands)
Long-term debt of Utilities¹	$	1,319,260		$	1,278,702
HEI term loan LIBOR + .75%, due 2017	125,000			125,000
HEI term loan LIBOR + .75%, due 2018	75,000			—
HEI senior note 4.41%, paid 2016	—			75,000
HEI senior note 5.67%, due 2021	50,000			50,000
HEI senior note 3.99%, due 2023	50,000			50,000
Less unamortized debt issuance costs	(241		)	(334		)
	$	1,619,019		$	1,578,368


¹	See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization.

As of December 31, 2016, the aggregate principal payments required on the Company’s long-term debt for 2017 through 2021 are $125 million in 2017, $125 million in 2018, nil in 2019, $96 million in 2020 and $50 million in 2021. As of December 31, 2016, the aggregate payments of principal required on the Utilities' long-term debt for 2017 through 2021 are nil in 2017, $50 million in 2018, nil in 2019, $96 million in 2020 and nil in 2021.

The HEI term loans and senior notes contain customary representation and warranties, affirmative and negative covenants and events of default (the occurrence of which may result in some or all of the notes then outstanding becoming immediately due and payable). The HEI term loans and senior notes also contain provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s revolving noncollateralized credit agreement, expiring on April 2, 2019. Upon a change of control or certain dispositions of assets (as defined in the Master Note Purchase Agreement dated March 24, 2011), HEI is required to offer to prepay the senior notes. HEI is in compliance with its covenants. (See Note 7 of the Consolidated Financial Statements).

The Utilities’ senior notes contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the notes of each and all of the utilities then outstanding becoming immediately due and payable) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing amended revolving noncollateralized credit agreement, expiring on April 2, 2019. The Utilities are in compliance with their covenants. (See Note 7 of the Consolidated Financial Statements).

Changes in long-term debt.

HEI. On March 21, 2016, HEI entered into a $75 million term loan agreement with Bank of America, N.A., which matures on March 23, 2018, and includes substantially the same financial covenant and customary conditions as the HEI credit agreement described above. On March 23, 2016, HEI drew an initial $75 million Eurodollar term loan at an initial interest rate of 1.18% for an initial one month interest period (and with subsequent resetting interest rates averaging 1.25% through December 31, 2016). The proceeds from the term loan were used to pay off HEI’s $75 million 4.41% senior note at maturity on March 24, 2016.

Hawaiian Electric. On December 15, 2016, Hawaiian Electric issued, through a private placement pursuant to the Note Purchase Agreement, $40 million of Series 2016A unsecured senior notes bearing taxable interest of 4.54%, which are due December 1, 2046 (the Notes) and includes substantially the same financial covenants and customary conditions as Hawaiian Electric's credit agreement as described above.

All the proceeds of the Notes were used by Hawaiian Electric to finance its capital expenditures and/or to reimburse funds used for the payment of capital expenditures.

The Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount.” The foregoing is a brief summary of only certain of the terms and conditions of the Note Purchase Agreement and does not purport to be a complete discussion of their terms. Accordingly, the foregoing description is qualified in its entirety by reference to the Note Purchase Agreement listed as Exhibit 4.23 to this Form 10-K.