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HONOLULU, September 25, 2024--(BUSINESS WIRE)--Hawaiian Electric Industries, Inc. (NYSE: HE) ("HEI") today announced that it has successfully closed an offering of newly issued shares of its common stock at a price of $9.25 per share, with net proceeds of approximately $558 million. As noted in a prospectus filed on September 24, HEI intends to use the net proceeds to fund its contribution to the expected Maui wildfire tort litigation settlement and for general corporate purposes.
HEI is now positioned to pre-fund HEI’s expected first settlement payment of approximately $478 million, which is expected to be required no sooner than mid-2025. HEI and Hawaiian Electric’s total payment obligation is $1.91 billion (after reflecting a credit of $75 million for the previous contribution to the One ʻOhana Initiative), to be paid in four equal annual installments pursuant to the proposed global settlement. HEI’s Board and management team will continue to develop financing plans for the remainder of the settlement payments.
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 95% of Hawaiʻi’s population and is undertaking an ambitious effort to decarbonize its operations and the broader state economy. Its banking subsidiary, American Savings Bank, is one of Hawaiʻi’s largest financial institutions, providing a wide array of banking and other financial services and working to advance economic growth, affordability and financial wellness. HEI also helps advance Hawaiʻi’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com.