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.
Source: Alexander & Baldwin, Inc.
Alexander & Baldwin, Inc.
Meredith J. Ching, 808.525.6669
L. Halloran, 808.525.8422 (investor relations inquiries)