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 ?Ohana 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 Hawai?i. HEI’s electric utility, Hawaiian Electric, supplies power to approximately 95% of Hawai?i’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 Hawai?i’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 Hawai?i’s sustainability goals through investments by its non-regulated subsidiary, Pacific Current. For more information, visit www.hei.com.
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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