ALEXANDER & BOLDWIN AMENDS REVOLVING CREDIT FACILITY
ALEXANDER & BALDWIN, INC. (NYSE: ALEX), a leading name in the Hawai'i commercial real estate sector, has recently announced exciting changes to its revolving credit facility. The enhancement extends the duration of the credit facility until 2028, providing an option for two additional six-month extensions. With this modification, A&B now has increased its borrowing capacity to a substantial $450 million.
KEY FEATURES OF THE AMENDED CREDIT FACILITY
The revised credit facility retains the original interest rate of SOFR plus 1.05%, alongside a SOFR adjustment of 0.10%. This structure is favorable for maintaining the company's financial stability while leveraging growth opportunities. The facility fee remains at 0.15% as determined by a leverage-based pricing grid.
PARTNERING WITH FINANCIAL INSTITUTIONS
Sizable financial players joined hands to facilitate this revolving credit adjustment. Notably, BofA Securities, First Hawaiian Bank, KeyBanc Capital Markets, and Wells Fargo Securities played critical roles as Joint Lead Arrangers and Joint Bookrunners. Bank of America N.A. is appointed as the administrative agent while various other banks also contribute significantly to this joint effort.
ABOUT ALEXANDER & BALDWIN, INC.
Alexander & Baldwin (A&B) stands as the largest publicly-traded real estate investment trust in Hawai'i, focusing predominantly on commercial real estate. Over its impressive 154-year history, A&B has been pivotal in the development and enhancement of the local economy, operating approximately 4 million square feet of commercial space across the islands. This includes 22 retail centers, 14 industrial properties, and four office buildings alongside numerous ground lease assets.
STRATEGIC IMPORTANCE OF THE REVOLVING CREDIT
The amended revolving credit facility is not just a financial lifeline; it signifies A&B’s strategic approach to adapting its portfolio in response to market changes and economic fluctuations within Hawai'i. This financial maneuver enables the company to explore new development projects and enhance existing assets, ensuring it remains competitive in a cutthroat market.
LONG-TERM VISION AND COMMUNITY IMPACT
A&B has long been held in high regard for its involvement in the community, operated mainly through grocery-anchored shopping centers that serve essential needs while stimulating local economies. This credit facility amendment aims to broaden its development scope, responding to the increasing demand for quality retail and residential spaces.
CONTACT INFORMATION
For further inquiries, please reach out to Jordan Hino at (808) 525-8475. You can also connect through email at investorrelations@abhi.com for detailed investor relations information.
FREQUENTLY ASKED QUESTIONS
What is the significance of Alexander & Baldwin's credit facility amendment?
The amendment enhances A&B's borrowing capacity to support growth strategies and improve financial flexibility.
What are the new terms of the revolving credit facility?
The facility extends to 2028 with options for two six-month extensions, maintaining the previous interest rate and fee structure.
Why is A&B considered a significant player in Hawai'i's real estate?
A&B is the largest publicly-traded REIT focused solely on Hawai'i, managing 4 million square feet of commercial space.
How will the amended credit facility impact local communities?
This financial adjustment enables A&B to develop quality retail spaces that meet local needs, contributing to economic growth.
Who are the key financial partners involved in this credit facility?
Major banks such as BofA Securities, First Hawaiian Bank, and Wells Fargo participated as Joint Lead Arrangers, aiding A&B's financial strategy.
