Alexander & Baldwin Finalizes Financing

press release
Friday, June 08, 2012

New A&B Will Have a Well-Capitalized Balance Sheet Providing Strong Liquidity and Financial Flexibility; Receives Favorable IRS Ruling on Tax-Free Nature of Planned Separation.

 

Alexander & Baldwin Holdings, Inc. (NYSE: ALEX)  ("Company"), successor by merger to Alexander & Baldwin, Inc., today announced that, in connection with previously announced plans to separate its transportation and land businesses into two publicly traded companies, it has entered into new financing arrangements for the land business ("New A&B").  The new financing arrangements will provide significant liquidity and support New A&B in the execution of its growth strategies as a stand-alone company and complement separately announced financing arrangements that have been made for Matson Navigation Company, Inc.  The New A&B financing arrangements consist of:  (1) a new $260 million unsecured revolving senior credit facility with a syndicate of banks, including an option to increase available capacity up to an additional $90 million; and (2) a replenishing $300 million, three-year unsecured note purchase and private shelf agreement, including a renewal or replacement of $207 million of existing unsecured notes with Prudential Investment Management, Inc. and its affiliates (collectively, "Prudential").

 

"Establishment of these financing arrangements marks another critical milestone as we move toward the separation of our transportation and land businesses into two stand-alone, publicly traded companies.  Along with the receipt of a favorable IRS ruling on the separation, we have successfully satisfied key prerequisites to the planned separation.  Subject to final board approval and the completion of various administrative and regulatory matters, we remain on track for completion of the separation early in the third quarter of this year or as early as the end of the second quarter," said Stanley M. Kuriyama, president and chief executive officer of Alexander & Baldwin Holdings, Inc.

 

"As a stand-alone company, New A&B will have a strong, well-capitalized balance sheet and the new financing arrangements will further enhance New A&B's liquidity and financial flexibility," said Kuriyama.  "In addition to securing significant borrowing capacity under our financing arrangements, we've also extended the maturities of New A&B's unsecured term debt by several years, resulting in no large principal payment required in any year through 2026.  The average required annual principal payment through 2026 will be $14 million.  The interest rates on the notes comprising the $211 million aggregate amount of New A&B term debt remain unchanged."

 

The unsecured revolving credit facility has an initial five-year term maturing in June 2017, and will be used for New A&B's development projects, real estate investments and general corporate purposes.  Bank of America, N.A. served as administrative agent, and Merrill Lynch, Pierce, Fenner & Smith Incorporated and First Hawaiian Bank served as joint lead arrangers of the new unsecured senior credit facility, whose lending group also includes Wells Fargo Bank, American AgCredit PCA, Bank of Hawaii, American Savings Bank and Central Pacific Bank.  Both the revolving credit facility and Prudential shelf agreement contain customary representations, financial and other affirmative and negative covenants, events of defaults and remedies, and are subject to completion of the separation transaction.

 

In addition to the completion of post-separation financing arrangements, the Company has received a favorable private letter ruling from the U.S. Internal Revenue Service confirming the tax-free nature of the planned separation.  Furthermore, Alexander & Baldwin, Inc. completed its shareholder-approved holding company merger which was intended to facilitate the separation.  As a result of the merger, Alexander & Baldwin Holdings, Inc. replaced Alexander & Baldwin, Inc. as the publicly held corporation through which the Company's operations are conducted and the previously-disclosed "Maritime Restrictions" became effective for Company shareholders.

 

Additional information about the financing arrangements and other matters covered in this release can be found in the Company's Form 8-K, which will be filed with the Securities and Exchange Commission today.

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter May 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

DSC Dredge Receives President’s E-Star Award

DSC Dredge, LLC, based in Reserve, La., has received the 2016 President’s “E-Star” Award for exports.   In a ceremony held on May 16, 2016, at the U.S. Department

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

Contracts

Haven Marine Signs Service Contract with Svitzer

Haven Marine Services informs it has signed a five year contract with Svitzer which will see the yard service the requirements of Svitzer’s vessels within the Bristol Channel and Irish Sea areas.

Portugal PM Warns Lisbon Dock Workers to End Strike

Portugal's prime minister warned Lisbon dock workers on Friday that his patience was running out after a strike that has lasted a month, paralysing the city's ports.

Hercules Offshore Filing for Bankruptcy Again

Hercules Offshore Inc said it planned to file for prepackaged Chapter 11 bankruptcy, just six months after the rig contractor emerged from bankruptcy protection.

Finance

Defense Appropriations Bill Includes $1 Bln for US Icebreaker

The U.S. Senate Appropriations Committee’s FY2017 Defense Appropriations Bill has included $1 billion in funding to accelerate construction of a new polar icebreaker for the U.

Higher Capesize Demand Pushes up Baltic Index

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Friday buoyed by higher demand for capesize vessels.

TT Club Reports Robust Financial Results for 2015

TT Club has announced its financial results for the year ended December 31, 2015, and AM Best affirms its A- (Excellent) rating for the 10th consecutive year.   Knud Pontoppidan,

News

US Hospital Ship Aids South Korean Sailor

A U.S. hospital ship conducted a medical evacuation, or “medevac”, May 27 to assist an ailing Republic of Korea sailor aboard a Republic of Korea Navy (ROK-N) submarine.

Details El Faro's Sinking Emerge from US Probe

U.S. investigators on Friday concluded two weeks of hearings into the sinking of cargo ship El Faro in a hurricane last fall that included reports the vessel had

NASSCO Lays Keel for Jones Act Tanker Liberty

U.S. shipbuilder General Dynamics NASSCO hosted a keel laying ceremony on Thursday, May 26 for the Liberty, one of three new ECO Class Jones Act tankers under a

Mergers & Acquisitions

Konecranes-Terex Deal to Proceed as Zoomlion Drops Rival Bid

China's Zoomlion Heavy Industry Science and Technology Co Ltd has abandoned its $3.4 billion bid for U.S. crane maker Terex Corp , clearing the way for a smaller

SCA Applauds Funding for New US Ships

The Senate Appropriations Committee this week acknowledged calls for increasing the Navy’s ship count, funding the construction of 10 new ships, as well as providing the U.

Tideland Signal Acquires Julius Signal

Tideland Signal Corporation, now part of Xylem, has entered into a definitive agreement to acquire certain assets of Julius Signal, extending the company’s portfolio

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Salvage Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1346 sec (7 req/sec)