HEI Successfully Raises $558 Million Through Recent Equity Offering
Hawaiian Electric Industries (NYSE: HE) has successfully closed an equity offering, raising $558 million in net proceeds at $9.25 per share. The funds will be used to contribute to the Maui wildfire tort litigation settlement and for general corporate purposes. HEI is now prepared to pre-fund its expected first settlement payment of approximately $478 million, due no sooner than mid-2025.
HEI and Hawaiian Electric's total payment obligation is $1.91 billion, to be paid in four equal annual installments. This proactive financing approach is seen as a significant step towards resolving the going concern assessment disclosed in August. The global settlement details are still being finalized and will require judicial review and approval once a final agreement is signed.
Hawaiian Electric Industries (NYSE: HE) ha concluso con successo un'offerta di capitale, raccogliendo 558 milioni di dollari in proventi netti a 9,25 dollari per azione. I fondi saranno utilizzati per contribuire al risarcimento per le controversie legali relative agli incendi di Maui e per scopi aziendali generali. HEI è ora pronta a finanziare in anticipo il suo primo pagamento di risarcimento previsto di circa 478 milioni di dollari, che scadrà non prima della metà del 2025.
Il totale dell'obbligazione di pagamento di HEI e Hawaii Electric è di 1,91 miliardi di dollari, da pagare in quattro rate annuali uguali. Questo approccio finanziario proattivo è visto come un passo significativo verso la risoluzione della valutazione della continuità aziendale comunicata ad agosto. I dettagli dell'accordo globale sono ancora in fase di definizione e richiederanno una revisione e approvazione giudiziale una volta firmato un accordo finale.
Hawaiian Electric Industries (NYSE: HE) ha cerrado con éxito una oferta de capital, recaudando 558 millones de dólares en ingresos netos a 9,25 dólares por acción. Los fondos se utilizarán para contribuir al acuerdo de litigios por los incendios forestales de Maui y para fines corporativos generales. HEI ahora está preparada para financiar por adelantado su primer pago de acuerdo esperado de aproximadamente 478 millones de dólares, que se debe pagar a más tardar a mediados de 2025.
La obligación total de pago de HEI y Hawaiian Electric es de 1,91 mil millones de dólares, que se pagará en cuatro cuotas anuales iguales. Este enfoque de financiación proactivo se ve como un paso significativo hacia la resolución de la evaluación de continuidad del negocio divulgada en agosto. Los detalles del acuerdo global aún se están finalizando y requerirán revisión judicial y aprobación una vez que se firme un acuerdo final.
하와이 전기 산업(Hawaiian Electric Industries, NYSE: HE)은 5억 5,800만 달러의 순수익을 올리며 성공적으로 주식 공모를 마쳤습니다. 주가는 주당 9.25달러입니다. 자금은 마우이 산불 피해 배상 소송 합의에 기여하고 일반 기업 목적을 위해 사용될 것입니다. HEI는 예상되는 첫 번째 배상금 지급액 약 4억 7,800만 달러를 미리 조달할 준비가 되어 있으며, 이는 2025년 중반 이전으로 예정되어 있습니다.
HEI와 하와이 전기의 총 지급 의무는 19억 1천만 달러로, 4회의 동일한 연간 분할납부로 지급됩니다. 이러한 사전 금융 접근법은 8월에 발표된 지속 가능성 평가를 해결하기 위한 중대한 진전을 보이고 있습니다. 글로벌 합의의 세부 사항은 아직 최종화되지 않았으며, 최종 계약이 체결되면 사법적 검토와 승인이 필요합니다.
Hawaiian Electric Industries (NYSE: HE) a réussi à clôturer une offre de capitaux, récoltant 558 millions de dollars de produits nets à 9,25 dollars par action. Les fonds serviront à contribuer au règlement des litiges liés aux incendies de forêt à Maui et à des fins d'entreprise générales. HEI est désormais prête à préfinancer son premier paiement de règlement prévu d'environ 478 millions de dollars, dû pas avant la mi-2025.
La somme totale des obligations de paiement de HEI et de Hawaiian Electric est de 1,91 milliard de dollars, à payer en quatre versements annuels égaux. Cette approche de financement proactive est considérée comme un pas significatif vers la résolution de l'évaluation de la continuité de l'exploitation divulguée en août. Les détails du règlement global sont encore en cours de finalisation et nécessiteront un examen judiciaire et une approbation une fois qu'un accord final sera signé.
Hawaiian Electric Industries (NYSE: HE) hat erfolgreich ein Aktienangebot abgeschlossen und dabei 558 Millionen Dollar an Nettomitteln zu 9,25 Dollar pro Aktie gesammelt. Die Mittel werden verwendet, um zu dem Vergleich über Klagen wegen der Waldbrände auf Maui beizutragen und für allgemeine Unternehmenszwecke. HEI ist nun bereit, die erwartete erste Vergleichszahlung von ca. 478 Millionen Dollar im Voraus zu finanzieren, die nicht vor Mitte 2025 fällig ist.
Die gesamthaft zu zahlende Verpflichtung von HEI und Hawaiian Electric beträgt 1,91 Milliarden Dollar, die in vier gleichen jährlichen Raten zu zahlen ist. Dieser proaktive Finanzierungsansatz wird als signifikanter Schritt zur Lösung der im August offengelegten Fortbestandsanalyse angesehen. Die Einzelheiten des globalen Vergleichs werden noch finalisiert und erfordern eine gerichtliche Überprüfung und Genehmigung, sobald eine endgültige Vereinbarung unterzeichnet ist.
- Successfully raised $558 million through equity offering
- Positioned to pre-fund first settlement payment of $478 million
- Proactive approach to funding settlement contribution
- Progress towards resolving going concern assessment
- Total payment obligation of $1.91 billion for wildfire settlement
- Equity offering may lead to shareholder dilution
- Ongoing financial obligations related to settlement payments
Insights
The successful
Importantly, this proactive funding approach addresses the company's going concern issues disclosed in August, potentially alleviating some investor worries. However, it's important to note that this is just the first step in funding the total
While the equity offering provides financial stability, it also results in dilution for existing shareholders. Investors should monitor how effectively management utilizes the additional funds for "general corporate purposes" beyond the settlement payment. The market's reaction to this capital raise and its impact on HEI's credit profile will be key indicators to watch in the coming weeks.
The
However, it's important to note that the settlement agreement is still in principle and subject to final negotiations, judicial review and approval. This introduces an element of uncertainty that investors should be aware of. The successful implementation of the global settlement could significantly reduce HEI's legal exposure and provide clarity on its financial obligations.
The structure of the settlement, with four equal annual installments, allows HEI some flexibility in managing its cash flows. However, the company will need to secure additional funding for future payments. The legal and financial implications of this settlement will likely influence HEI's operations and strategic decisions for years to come, making it a critical factor for long-term investors to consider.
HEI is now positioned to pre-fund HEI’s expected first settlement payment of approximately
Scott Seu, President and CEO of HEI, said, “We are taking a proactive approach to funding our settlement contribution, and securing this financing so quickly after entering the settlement agreement in principle – and well ahead of any payment coming due – is a testament to our progress and ability to deliver on our commitments. This is also a meaningful step toward resolving the going concern assessment we disclosed in August.”
Details of the global settlement are still being finalized and at this point, the proposed settlement remains an agreement in principle between the defendants and attorneys representing individual and class plaintiffs. Once a final settlement agreement is signed, it will take effect following judicial review and approval.
ABOUT HEI
The HEI family of companies provides the energy and financial services that empower much of the economic and community activity of Hawaiʻi. HEI’s electric utility, Hawaiian Electric, supplies power to approximately
Forward-Looking Statements
This release may contain “forward-looking statements,” which include statements that are predictive in nature, depend upon or refer to future events or conditions, and usually include words such as “will,” “expects,” “anticipates,” “intends,” “plans,” “believes,” “predicts,” “estimates” or similar expressions. In addition, any statements concerning future financial performance, ongoing business strategies or prospects or possible future actions are also forward-looking statements. Forward-looking statements are based on current expectations and projections about future events and are subject to risks, uncertainties and the accuracy of assumptions concerning HEI and its subsidiaries, the performance of the industries in which they do business and economic, political and market factors, among other things. These forward-looking statements are not guarantees of future performance.
Forward-looking statements in this release should be read in conjunction with the “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors” discussions (which are incorporated by reference herein) set forth in HEI’s Annual Report on Form 10-K for the year ended December 31, 2023 and HEI’s other periodic reports that discuss important factors that could cause HEI’s results to differ materially from those anticipated in such statements. These forward-looking statements speak only as of the date of the report, presentation or filing in which they are made. Except to the extent required by the federal securities laws, HEI, Hawaiian Electric, ASB and their subsidiaries undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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Investor Contact
Mateo Garcia
Director, Investor Relations
ir@hei.com
(808) 543-7300
Media Contact
Julie Smolinski
VP, Strategy & Corporate Sustainability
media@hei.com
(808) 543-5874
Source: Hawaiian Electric Industries, Inc.
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