Monday, June 24, 2024
Hawai'i Free Press

Current Articles | Archives

Friday, August 25, 2023
Hawaiian Electric Stock Plunges After Dividends Suspended
By News Release @ 3:31 PM :: 2068 Views :: Maui County, Energy

HAWAIIAN ELECTRIC INDUSTIES

FORM 8-K CURRENT REPORT

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

HEI Investor Update, August 21, 2023

The recent devastation on Maui is an unimaginable tragedy and is deeply personal for us at HEI and Hawaiian Electric – it impacts our friends, our families, our colleagues and our neighbors. We are doing everything we can to support all of those who have been impacted and help Maui recover. Thanks to the hard work of our crews and many others, we now expect 95% of customers in the affected areas will have had their power restored by the end of this week.

We are working with the county, state and federal governments to determine what happened in the course of an extraordinary climatological event on August 8, 2023. Others may take advantage of this situation to engage in speculation and opportunism, but our focus continues to be on the restoration, recovery and rebuilding efforts in our communities.

HEI’s overarching objective is to remain a strong, financially healthy enterprise to empower a thriving future for Hawai‘i. While the fundamentals of our businesses remain strong, we are taking prudent and measured actions to reinforce our commitment to serving the community for the long term.

Update on Revolving Credit Agreements

Yesterday, HEI drew $170 million and Hawaiian Electric drew $200 million under their existing revolving unsecured credit facilities. HEI and Hawaiian Electric plan to invest the cash proceeds in highly liquid short-term investments. We are proactively strengthening our balance sheets as Hawaiian Electric continues providing reliable service to our customers and supporting the recovery in Maui.

Update on Dividend

In addition, the HEI Board of Directors has determined that, to further increase its cash position, it will suspend the quarterly cash dividend on the company’s common stock, beginning with the third quarter of 2023. We regret that this may impact members of our local communities who rely on this dividend as a source of income. Taking this action will allow us to continue to allocate cash to rebuilding and restoring power and ensure a strong future for the utility. HEI is contractually obligated to pay the cash dividend of $0.36 per share, payable September 8, 2023, that it declared on August 3, 2023, prior to the fires.

Board Update

Separately, HEI and American Savings Bank determined that independent directors Richard Dahl, Michael Kennedy and Yoko Otani, who served on both HEI’s and American Savings Bank’s Boards, will serve exclusively on a five-member Board of American Savings Bank as of August 22, 2023, alongside Scott Seu, President and CEO of HEI, and Ann Teranishi, President and CEO of American Savings Bank. Mr. Dahl will serve as the independent chair of the Board of American Savings Bank. Mr. Dahl, Mr. Kennedy and Ms. Otani each bring deep expertise in the banking industry. This new structure enables these directors to focus solely on the Bank’s business, which has a unique and important role in our Hawai‘i communities. American Savings Bank is well positioned and stands ready to support our community as families heal and rebuild in the aftermath of the Maui wildfires.

American Savings Bank is in a strong financial position with 79% of its deposits FDIC-insured and 7% fully collateralized. American Savings Bank has deep lending capacity, with 273% liquidity coverage for uninsured deposits. American Savings Bank has over $3.1 billion of secured borrowing capacity at the Federal Home Loan Bank and Federal Reserve. American Savings Bank customer deposits are safe – there is no risk to customer deposits as a result of legal claims related to the fires.

---30---

SA: Hawaiian Electric corrals cash amid Maui fire struggles

WaPo: Hawaiian Electric may collapse after fires, forcing reckoning for utilities - The Washington Post

F: Bankruptcy ‘Most Plausible’ Outcome For Hawaiian Electric As Stock Slides And Allegations Over Maui Fire Grow, Wells Fargo Says (forbes.com)

L360: Hawaii Utility Facing Shareholder Suit Over Maui Fire

CB: Investors Sue Hawaiian Electric For 'Misleading' Them About Potential Liability For Wildfire

SA: Hawaiian Electric suspends dividend, draws down credit lines

SA:  Hawaiian Electric plunges on dividend halt, credit drawdown

Links

TEXT "follow HawaiiFreePress" to 40404

Register to Vote

2aHawaii

Aloha Pregnancy Care Center

AntiPlanner

Antonio Gramsci Reading List

A Place for Women in Waipio

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii

FIRE

Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Habele.org

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii Military History

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Together

HiFiCo

Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

July 4 in Hawaii

Land and Power in Hawaii

Lessons in Firearm Education

Lingle Years

Managed Care Matters -- Hawaii

MentalIllnessPolicy.org

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii

Natatorium.org

National Parents Org Hawaii

NFIB Hawaii News

NRA-ILA Hawaii

Obookiah

OHA Lies

Opt Out Today

Patients Rights Council Hawaii

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii

RailRipoff.com

Rental by Owner Awareness Assn

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

School Choice in Hawaii

SenatorFong.com

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

Waagey.org

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii