UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report: December 5, 2011
Exact Name of Registrant |
|
|
Commission |
|
I.R.S. Employer |
as Specified in Its Charter |
|
|
File Number |
|
Identification No. |
Hawaiian Electric Industries, Inc. |
|
1-8503 |
|
99-0208097 | |
Hawaiian Electric Company, Inc. |
|
1-4955 |
|
99-0040500 |
State of Hawaii
(State or other jurisdiction of incorporation)
900 Richards Street, Honolulu, Hawaii 96813
(Address of principal executive offices and zip code)
Registrants telephone number, including area code:
|
(808) 543-5662 - Hawaiian Electric Industries, Inc. (HEI) |
(808) 543-7771 - Hawaiian Electric Company, Inc. (HECO) |
None
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
|
|
[ ] |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
|
|
[ ] |
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
|
|
[ ] |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
1.01 Entry into a Material Definitive Agreement.
HEI
Effective December 5, 2011, HEI and a syndicate of eight financial institutions entered into an amendment to their revolving unsecured credit agreement. The amendment revised the pricing of HEIs $125 million line of credit facility (with a letter of credit sub-facility) and extended the term of the facility to December 5, 2016. Any draws on the facility bear interest at the Adjusted LIBO Rate, as defined in the agreement, plus 150 basis points. Annual fees on undrawn commitments are 25 basis points. The amended agreement contains provisions for revised pricing in the event of a long-term ratings change. For example, a ratings downgrade of HEIs long-term rating (e.g., from BBB/Baa2 to BBB-/Baa3 by Standard & Poors (S&P) and Moodys Investors Service (Moodys), respectively) would result in a commitment fee increase of 5 basis points and an interest rate increase of 25 basis points on any drawn amounts. On the other hand, a ratings upgrade (e.g., from BBB/Baa2 to BBB+/Baa1 by S&P or Moodys, respectively) would result in a commitment fee decrease of 2.5 basis points and an interest rate decrease of 25 basis points on any drawn amounts. All other terms and covenants of the original credit agreement dated May 7, 2010 remain unchanged. (See HEI Exhibit 10.2 and Note 11 of HEIs Notes to Consolidated Financial Statements in HEIs Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 for the original credit agreement and a description of the original credit agreement, respectively.)
This description of the amended credit agreement does not purport to be a complete description and is qualified in its entirety by reference to the amended credit agreement filed as HEI Exhibit 10.1, which is incorporated herein by reference.
HECO
Effective December 5, 2011, HECO and a syndicate of eight financial institutions entered into an amendment to their revolving unsecured credit agreement. The amendment revised the pricing of HECOs $175 million line of credit facility (with a letter of credit sub-facility). The credit agreement as amended has an initial term which expires on December 3, 2012, but the term of the facility will extend to December 5, 2016 if the extension is approved by the Hawaii Public Utilities Commission. Any draws on the facility bear interest at the Adjusted LIBO Rate, as defined in the agreement, plus 150 basis points. Annual fees on undrawn commitments are 25 basis points. The amended agreement contains provisions for revised pricing in the event of a long-term ratings change. For example, a ratings downgrade of HECOs long-term rating (e.g., from BBB/Baa2 to BBB-/Baa3 by S&P and Moodys, respectively) would result in a commitment fee increase of 5 basis points and an interest rate increase of 25 basis points on any drawn amounts. On the other hand, a ratings upgrade (e.g., from BBB/Baa2 to BBB+/Baa1 by S&P or Moodys, respectively) would result in a commitment fee decrease of 2.5 basis points and an interest rate decrease of 25 basis points on any drawn amounts. All other terms and covenants of the original credit agreement dated May 7, 2010 remain unchanged. (See HECO Exhibit 10.3 and Note 9 of HECOs Notes to Consolidated Financial Statements in HECOs Quarterly Report on Form 10-Q for the quarter ended March 31, 2010 for the original credit agreement and a description of the original credit agreement, respectively.)
This description of the amended credit agreement does not purport to be a complete description and is qualified in its entirety by reference to the amended credit agreement filed as HECO Exhibit 10.2, which is incorporated herein by reference.
HEI and HECO intend to continue to use HEIs website, www.hei.com, as a means of disclosing additional information. Such disclosures will be included on HEIs website in the Investor Relations section. Accordingly, investors should routinely monitor such portions of HEIs website, in addition to following HEIs, HECOs and American Savings Bank, F.S.B.s (ASB) press releases, SEC filings and public
conference calls and webcasts. The information on HEIs website is not incorporated by reference in this document or in the Companys SEC filings unless, and except to the extent, specifically incorporated by reference. Investors may also wish to refer to the PUC website at dms.puc.hawaii.gov/dms in order to review documents filed with and issued by the PUC. No information on the PUC website is incorporated by reference in this document or in the Companys other SEC filings.
Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.
The disclosure under Item 1.01 above is incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit No. |
Description |
|
|
HEI |
Amendment No. 1, dated as of December 5, 2011, to the Credit Agreement, dated as of May 7, 2010, among HEI, as Borrower, the Lenders Party Thereto and Bank of Hawaii, as Co-Syndication Agent, and U.S. Bank National Association, as Co-Syndication Agent, and Wells Fargo Bank, National Association, as Co-Syndication Agent, and Bank of America, N.A., as Co-Documentation Agent, and Union Bank, N.A., as Co-Documentation Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Bank, and J.P. Morgan Securities Inc., as Sole Lead Arranger and Sole Book Runner |
|
|
HECO |
Amendment No. 1, dated as of December 5, 2011, to the Credit Agreement, dated as of May 7, 2010, among HECO, as Borrower, the Lenders Party Thereto and Bank of Hawaii, as Co-Syndication Agent, and U.S. Bank National Association, as Co-Syndication Agent, and Wells Fargo Bank, National Association, as Co-Syndication Agent, and Bank of America, N.A., as Co-Documentation Agent, and Union Bank, N.A., as Co-Documentation Agent, and JPMorgan Chase Bank, N.A., as Administrative Agent and Issuing Bank, and J.P. Morgan Securities Inc., as Sole Lead Arranger and Sole Book Runner |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrants have duly caused this report to be signed on their behalf by the undersigned thereunto duly authorized. The signature of the undersigned companies shall be deemed to relate only to matters having reference to such companies and any subsidiaries thereof.
HAWAIIAN ELECTRIC INDUSTRIES, INC. |
|
HAWAIIAN ELECTRIC COMPANY, INC. |
(Registrant) |
|
(Registrant) |
|
|
|
|
|
|
/s/ James A. Ajello |
|
/s/ Tayne S. Y. Sekimura |
James A. Ajello |
|
Tayne S. Y. Sekimura |
Executive Vice President, |
|
Senior Vice President and |
Chief Financial Officer and Treasurer |
|
Chief Financial Officer |
(Principal Financial Officer of HEI) |
|
(Principal Financial Officer of HECO) |
Date: December 6, 2011 |
|
Date: December 6, 2011 |
Exhibit 10.1
EXECUTION COPY
AMENDMENT NO. 1
Dated as of December 5, 2011
to
CREDIT AGREEMENT
Dated as of May 7, 2010
THIS AMENDMENT NO. 1 (Amendment No. 1) is made as of December 5, 2011 by and among Hawaiian Electric Industries, Inc. (the Borrower), the financial institutions listed on the signature pages hereof (collectively, the Lenders) and JPMorgan Chase Bank, N.A., as Administrative Agent (the Administrative Agent), under that certain Credit Agreement dated as of May 7, 2010 by and among the Borrower, the Lenders and the Administrative Agent (the Credit Agreement). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.
WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to the following amendments to the Credit Agreement.
Applicable Margin means with respect to: (a) any Eurodollar Borrowings and any Letters of Credit, at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading Eurodollar Margin and adjacent to such Pricing Level, (b) any ABR Borrowings, at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading ABR Margin and adjacent to such Pricing Level and (c) with respect to the commitment fee payable under Section 3.03(a), at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading Commitment Fee Rate and adjacent to such Pricing Level, in each case, subject to the provisos set forth below:
Pricing Level |
|
Issuer Ratings |
|
Commitment |
|
Eurodollar |
|
ABR | |
I |
|
(A-/A3) or higher |
|
|
0.20% |
|
1.00% |
|
0.00% |
II |
|
(BBB+/Baa1) |
|
|
0.225% |
|
1.25% |
|
0.25% |
III |
|
(BBB/Baa2) |
|
|
0.25% |
|
1.50% |
|
0.50% |
IV |
|
(BBB-/Baa3) |
|
|
0.30% |
|
1.75% |
|
0.75% |
V |
|
(BB+/Ba1) or lower |
|
|
0.35% |
|
2.00% |
|
1.00% |
If the applicable Issuer Ratings by S&P and Moodys are split-rated (i) by one rating category, the Pricing Level shall be determined by the higher of the two (e.g., an Issuer Rating of BBB-/Baa2 results in Pricing Level III) and (ii) by more than one rating category, the Pricing Level shall be determined by the level one below the higher rating by either S&P or Moodys (e.g., an Issuer Rating of BBB-/Baa1 results in Pricing Level III and an Issuer Rating of BBB+/Baa3 results in Pricing Level III). Each change in the Applicable Margin shall apply during the period commencing on the effective date of such change and ending on the date immediately preceding the effective date of the next such change. If the rating system of S&P or Moodys shall change, or if either such rating agency shall cease to be in the business of rating corporate debt obligations, the Borrower and the Administrative Agent (in consultation with the Lenders) shall negotiate in good faith to amend this definition to reflect such changed rating system or the unavailability of ratings from such rating agency and, pending the effectiveness of any such amendment, the Applicable Margin shall be determined by reference to the rating most recently in effect prior to such change or cessation.
Commitment Termination Date means the earliest of (a) December 5, 2016, (b) the date on which the Commitments are terminated in whole pursuant to Section 2.05 and (c) the date the Commitments are terminated in whole pursuant to Article 8.
Permitted Investments means, at any time, investments as allowed in accordance with the HEI Cash Management Investment Guidelines dated December 13, 2010, as disclosed to the Administrative Agent prior to the Amendment No. 1 Effective Date and as the same may be amended from time to time with the written consent of the Administrative Agent, such written consent not to be unreasonably delayed or withheld.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed by their respective authorized officers as of the day and year first above written.
|
HAWAIIAN ELECTRIC INDUSTRIES, INC., | ||
|
as a Borrower | ||
|
| ||
|
|
| |
|
By: |
/s/ James A. Ajello |
|
|
Name: James A. Ajello | ||
|
Title: Executive Vice President, Treasurer and Chief | ||
|
| ||
|
|
| |
|
By: |
/s/ David M. Kostecki |
|
|
Name: David M. Kostecki | ||
|
Title: Vice President-Finance, Controller and Chief |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
JPMORGAN CHASE BANK, N.A., as Administrative Agent, as Issuing Bank and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Ling Li |
|
|
Name: Ling Li | ||
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
BANK OF HAWAII, as a Co-Syndication Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Anna Hu |
|
|
Name: Anna Hu | ||
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
US BANK NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Holland H. Williams |
|
|
Name: Holland H. Williams | ||
|
Title: AVP & Portfolio Manager |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Yann Blindert |
|
|
Name: Yann Blindert | ||
|
Title: Director |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
BANK OF AMERICA, N.A., as a Co-Documentation Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Gordon H. Gray |
|
|
Name: Gordon H. Gray | ||
|
Title: Senior Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
UNION BANK, N.A., as a Co-Documentation Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Robert J. Olson |
|
|
Name: Robert J. Olson | ||
|
Title: Senior Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
THE BANK OF NEW YORK MELLON, as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Mark W. Rogers |
|
|
Name: Mark W. Rogers | ||
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
|
GOLDMAN SACHS BANK USA, as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Mark Walton |
|
|
Name: Mark Walton | ||
|
Title: Authorized Signatory |
Signature Page to Amendment No. 1
Hawaiian Electric Industries, Inc.
Credit Agreement dated as of May 7, 2010
Exhibit 10.2
EXECUTION COPY
AMENDMENT NO. 1
Dated as of December 5, 2011
to
CREDIT AGREEMENT
Dated as of May 7, 2010
THIS AMENDMENT NO. 1 (Amendment No. 1) is made as of December 5, 2011 by and among Hawaiian Electric Company, Inc. (the Borrower), the financial institutions listed on the signature pages hereof (collectively, the Lenders) and JPMorgan Chase Bank, N.A., as Administrative Agent (the Administrative Agent), under that certain Credit Agreement dated as of May 7, 2010 by and among the Borrower, the Lenders and the Administrative Agent (the Credit Agreement). Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to them in the Credit Agreement.
WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein;
NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower, the Lenders party hereto and the Administrative Agent have agreed to the following amendments to the Credit Agreement.
Applicable Margin means with respect to: (a) any Eurodollar Borrowings and any Letters of Credit, at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading Eurodollar Margin and adjacent to such Pricing Level, (b) any ABR Borrowings, at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading ABR Margin and adjacent to such Pricing Level and (c) with respect to the commitment fee payable under Section 3.03(a), at all times during which the applicable Pricing Level set forth below is in effect, the percentage set forth below under the heading Commitment Fee Rate and adjacent to such Pricing Level, in each case, subject to the provisos set forth below:
Pricing Level |
|
Issuer Ratings |
|
Commitment |
|
Eurodollar |
|
ABR | |
I |
|
(A-/A3) or higher |
|
|
0.20% |
|
1.00% |
|
0.00% |
II |
|
(BBB+/Baa1) |
|
|
0.225% |
|
1.25% |
|
0.25% |
III |
|
(BBB/Baa2) |
|
|
0.25% |
|
1.50% |
|
0.50% |
IV |
|
(BBB-/Baa3) |
|
|
0.30% |
|
1.75% |
|
0.75% |
V |
|
(BB+/Ba1) or lower |
|
|
0.35% |
|
2.00% |
|
1.00% |
Commitment Termination Date means the earliest of (a) December 3, 2012, subject to automatic extension to the date, and upon satisfaction of the conditions, set forth in Section 2.05(a), (b) the date on which the Commitments are terminated in whole pursuant to Section 2.05 and (c) the date the Commitments are terminated in whole pursuant to Article 8.
Permitted Investments means, at any time, investments as allowed in accordance with the HECO Cash Management Investment Guidelines dated August 12, 2011, as disclosed to the Administrative Agent prior to the Amendment No. 1 Effective Date and as the same may be amended from time to time with the written consent of the Administrative Agent, such written consent not to be unreasonably delayed or withheld.
(a) Unless previously terminated, the Revolving Commitments and the Letter of Credit Commitments shall terminate on the Commitment Termination Date; provided however, upon delivery to the Administrative Agent of a copy of an order or approval issued by the PUC, certified by a Financial Officer to be true and complete, which is final and not subject to review or appeal, that approves the extension of the date set forth in clause (a) of the definition of Commitment Termination Date, then the date set forth in clause (a) of the definition of Commitment Termination Date shall be automatically extended to the latest date permitted by such order or approval but in no event later than December 5, 2016.
[Signature Pages Follow]
IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be duly executed by their respective authorized officers as of the day and year first above written.
|
HAWAIIAN ELECTRIC COMPANY, INC., | ||
|
as a Borrower | ||
|
| ||
|
| ||
|
By: |
/s/ Tayne S. Y. Sekimura |
|
|
Name: Tayne S. Y. Sekimura | ||
|
Title: Senior Vice President & Chief Financial Officer | ||
|
| ||
|
| ||
|
By: |
/s/ Patsy H. Nanbu |
|
|
Name: Patsy H. Nanbu | ||
|
Title: Controller |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
JPMORGAN CHASE BANK, N.A., | |
|
as Administrative Agent, as Issuing Bank and as a Lender | |
|
| |
|
| |
|
By: |
/s/ Ling Li |
|
Name: Ling Li | |
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
BANK OF HAWAII, as a Co-Syndication Agent and as a Lender | |
|
|
|
|
|
|
|
By: |
/s/ Anna Hu |
|
Name: Anna Hu | |
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
US BANK NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender | |
|
|
|
|
|
|
|
By: |
/s/ Holland H. Williams |
|
Name: Holland H. Williams | |
|
Title: AVP & Portfolio Manager |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender | |
|
|
|
|
|
|
|
By: |
/s/ Yann Blindert |
|
Name: Yann Blindert | |
|
Title: Director |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
BANK OF AMERICA, N.A., as a Co-Documentation Agent and as a Lender | ||
|
| ||
|
| ||
|
By: |
/s/ Gordon H. Gray |
|
|
Name: Gordon H. Gray | ||
|
Title: Senior Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
UNION BANK, N.A., as a Co-Documentation Agent and as a Lender | ||
|
| ||
|
|
| |
|
By: |
/s/ Robert J. Olson |
|
|
Name: Robert J. Olson | ||
|
Title: Senior Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
THE BANK OF NEW YORK MELLON, as a Lender | ||
|
| ||
|
|
| |
|
By: |
/s/ Mark W. Rogers |
|
|
Name: Mark W. Rogers | ||
|
Title: Vice President |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010
|
GOLDMAN SACHS BANK USA, as a Lender | ||
|
| ||
|
|
| |
|
By: |
/s/ Mark Walton |
|
|
Name: Mark Walton | ||
|
Title: Authorized Signatory |
Signature Page to Amendment No. 1
Hawaiian Electric Company, Inc.
Credit Agreement dated as of May 7, 2010