Hawaiian Electric Industries Raises $558 Million Eagerly
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Hawaiian Electric Industries Successfully Completes Equity Offering
Hawaiian Electric Industries, Inc. (NYSE: HE) recently announced the successful closure of an equity offering, resulting in the issuance of new shares priced at $9.25 each. This strategic move has garnered net proceeds of approximately $558 million, earmarked primarily for the expected Maui wildfire tort litigation settlement and essential corporate activities.
Funding for Maui Wildfire Tort Settlement
Following the completion of this equity offering, HEI is poised to make significant financial contributions towards the anticipated Maui wildfire tort settlement. A pre-funding strategy allows HEI to allocate approximately $478 million for the expected initial settlement payment, which won't be due until mid-2025.
Structured Payment Obligations
The total financial responsibility for HEI and Hawaiian Electric regarding this settlement amounts to $1.91 billion. This figure reflects a $75 million credit attributed to HEI's prior contributions to the One ?Ohana Initiative. The planned settlement payment will occur in four equal annual installments as part of a broader global settlement strategy.
Leadership Insights
Scott Seu, the President and CEO of HEI, expressed pride in the company’s timely execution of the financing needed for the settlement. He emphasized that this proactive financing approach reaffirms HEI’s commitment to meeting its obligations and advancing its dedicated efforts towards resolving ongoing concerns about financial stability.
Details on the Proposed Global Settlement
The specifics of the global settlement are still being negotiated. At present, it exists only as a provisional agreement, pending finalization between the concerned parties and legal representatives of both individual and class plaintiffs. The agreement will only take effect when signed and subsequently approved through judicial review.
Hawaiian Electric's Commitment to Sustainability
As a leader in the energy sector, HEI is committed to embracing sustainable practices. The HEI family of companies offers vital energy and financial services that stimulate Hawaii's economy and support community development. Hawaiian Electric meets the energy needs of roughly 95% of the state's populace, actively pursuing an ambitious strategy aimed at decarbonizing both its operations and the broader statewide economy.
About American Savings Bank
HEI’s financial services extend beyond energy supply. American Savings Bank, a subsidiary of HEI, ranks as one of Hawaii’s most substantial financial institutions. It provides a range of banking services while promoting economic growth and financial wellness.
Investment in Sustainability Goals
Furthermore, HEI strives to support Hawaii’s sustainability initiatives through its investments via Pacific Current, its non-regulated subsidiary. These efforts reflect HEI's broader commitment to promoting environmental responsibility throughout the state.
Frequently Asked Questions
What is the purpose of HEI's recent equity offering?
HEI's equity offering aims to fund its contribution to the Maui wildfire tort litigation settlement and support general corporate purposes.
How much money did HEI raise through the offering?
HEI successfully raised approximately $558 million through the equity offering.
When is HEI expected to make the first settlement payment?
The first settlement payment is anticipated to be required no sooner than mid-2025.
What is the total financial obligation of HEI regarding the settlement?
The total payment obligation is $1.91 billion, with payments structured to be made in four equal annual installments.
How does HEI support sustainability in Hawaii?
HEI promotes sustainability through decarbonization efforts, investments in community initiatives, and financial services aimed at fostering economic growth.
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