Note 4 - Long-term Debt

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Debt Disclosure [Text Block]

4 . LONG-TERM DEBT

Long-term debt at

December

31,

2016

and

2015

consisted of the following:

	201 6		201 5
	(in thousands)
First Hawaiian Bank, revolving line of credit, 4.37%	$	6,857	$	-
American AgCredit term loan, 7.00%		-		14,697
Wells Fargo revolving loans, 4.00%		-		25,868
Total		6,857		40,565
Less current portion		-		40,565
Long-term debt	$	6,857	$	-

FIRST HAWAIIAN BANK

On

August

5,

2016,

the Company refinanced its

$26.4

million of outstanding bank loans under a

$27.0

million revolving line of credit with First Hawaiian Bank. The credit facility matures on

December

31,

2019

and provides for

two

optional

one

-year extension periods. Interest on borrowings was initially at LIBOR plus

3.75%.

A significant portion of the Company’s real estate holdings were pledged as security for the credit facility. 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 credit facility’s 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.

On

December

30,

2016,

the Company sold the Kapalua Village Center for

$18.0

million. The property was pledged as collateral under the credit facility and, accordingly, net proceeds from the sale of

$17.6

million were repaid toward the Company’s outstanding loans at closing. In connection with the repayment, the credit facility was modified to release certain real estate assets previously pledged as security for the credit facility including,

1,065

acres of Upcountry Maui land, buildings and improvements, the Company’s

46

-acre Kapalua Central Resort project, and stock of the Company’s

two

publicly-regulated utility companies. In addition, the credit facility’s revolving commitment amount was permanently reduced to

$10.0

million and the interest rate on borrowings was reduced to LIBOR plus

3.50%.

At

December

31,

2016,

real estate assets pledged as security for the credit facility include the Company’s

800

-acre Kapalua Mauka project and approximately

30,000

square feet of commercial leased space in the Kapalua Resort.

The Company believes that it is in compliance with the covenants under the credit facility as of

December

31,

2016.