Note 6 - Long-term Debt

9 Months Ended

Sep. 30, 2016

LONG-TERM DEBT

Long-term debt at September 30, 2016 and December 31, 2015 consisted of the following:

	September 30, 201 6		December 31, 2015
	(in thousands)
First Hawaiian Bank revolving line of credit, 4.38%	$	24,500	$	-
Wells Fargo revolving line of credit, 4.00%		-		25,868
American AgCredit term loan, 7.00%		-		14,697
Total		24,500		40,565
Less current portion		-		40,565
Long-term debt	$	24,500	$	-

On August 5, 2016, the Company refinanced its $26.4 million of outstanding bank loans under a $27.0 million revolving credit facility with First Hawaiian Bank. The Credit Facility matures on December 31, 2019 and provides for two optional one-year extension periods. Interest on borrowings is at LIBOR plus 3.75%, until such time as the Company obtains regulatory approval for the pledging of the stock of one of its utility subsidiaries, upon which interest decreases to LIBOR plus 3.50%.

The Credit Facility is secured by a significant portion of the Company’s real estate holdings, including approximately 850 acres within the Kapalua Resort and approximately 1,065 acres in Haliimaile. Net proceeds from the sale of any real estate assets pledged as collateral under the Credit Facility are required to be repaid toward outstanding borrowings and will permanently reduce the revolving commitment amount.

The terms of the Credit Facility include various representations, warranties, affirmative, negative and financial covenants and events of default customary for financings of this type. Financial covenants include an initial minimum liquidity (as defined) of $0.5 million beginning December 31, 2016, a maximum of $45.0 million in total liabilities, and a limitation on new indebtedness. There are no commitment fees on the unused portion of the Credit Facility.

The Company believes it is in compliance with the covenants under the Credit Facility.