A&B to Extend Prudential Shelf Agreement, “Locks Rate” at 6.90% for $100 Million Draw
04 Febrero 2009 - 7:00AM
Business Wire
Alexander & Baldwin, Inc. (NYSE:AXB)(�Company�) announced
today that it entered into an agreement in principle to extend its
2006 shelf agreement with Prudential Investment Management
(�Prudential�) for an additional three years. The 2006 agreement
provides for the issuance of up to $400 million in senior
promissory notes and was due to expire in April. The Company also
announced that it committed to a fourth of a series of senior
promissory notes, totaling $100 million, carrying interest at an
annual fixed rate of 6.90 percent.
�The extension of our shelf agreement with Prudential, and the
borrowing at a favorable rate, reflect the strength of our balance
sheet, the depth of our ability to generate cash, and the diversity
of our earnings potential,� said W. Allen Doane, chairman and chief
executive officer of A&B. �With the 11-year final maturity,
8-year average maturity, fixed-rate term, we better match financing
to the investments we make in durable, long-lived assets. And, as
we expect to use proceeds to pay down existing revolving credit
facility balances, we eliminate short-term capital market risk
while maintaining ample capacity for opportunistic investments and
long-term value creation.�
The funding date for the draw is expected in early March, with
the extension of the agreement to be executed at the same time. The
extension is subject to approval by Prudential�s Investment
Committee. Interest will be paid semi-annually, commencing
September 2009 and the principal under the note will be repaid in
annual installments starting in 2012. A full schedule of the
principal payments attached to the note, and other details, are
furnished separately in a concurrent filing.
About Alexander &
Baldwin: A&B is headquartered in Honolulu, Hawaii and is
engaged in ocean transportation and logistics services through its
subsidiaries, Matson Navigation Company, Inc., Matson Integrated
Logistics, Inc. and Matson Global Distribution Services; in real
estate through A&B Properties, Inc.; and in food products
through Hawaiian Commercial & Sugar Company and Kauai Coffee
Company, Inc. Additional information about A&B may be found at
its web site: www.alexanderbaldwin.com.
Statements in this press release that are not historical facts
are �forward-looking statements,� within the meaning of the Private
Securities Litigation Reform Act of 1995, that involve a number of
risks and uncertainties that could cause actual results to differ
materially from those contemplated by the relevant forward-looking
statement. These forward-looking statements are not guarantees of
future performance. This release should be read in conjunction with
our Annual Report on Form 10-K and our other filings with the SEC
through the date of this release, which identify important factors
that could affect the forward-looking statements in this
release.
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