Hawaiian Electric Industries disclosed on Tuesday that it has nearly exhausted its revolving credit line. The company is aiming to expand its cash holdings, which have fallen due to the large-scale wildfires in Maui, Hawaii, and has also announced that it has decided to stop paying quarterly dividends.
The company said in a regulatory filing that it will stop paying a cash dividend of 36 cents per share starting in the third quarter. The dividend announced on August 3, before the Maui wildfires, is contractually obligated to be paid next month.
The company also disclosed that it has drawn a total of $370 million from two revolving lines of credit. The company withdrew $170 million and its subsidiary Hawaiian Electric withdrew $200 million on Thursday. He said the money would be used for “short-term, highly liquid investments.”
Shares of Hawaiian Electric Industries plunged 24% in after-hours trading following the disclosure.
A number of lawsuits have been filed over the deadly wildfires on Maui, linked to the company’s power lines.According to investment research firm Capstone, if the company’s negligence is determined to be the cause, the amount of legal liability will benearly $4 billionmay rise to
S&P Global Ratings downgraded Hawaiian Electric Industries and its subsidiaries to ‘B-‘ following the announcement of the dividend suspension. Conventionally “BB-“. continuation”credit・watch”.
Original title:Hawaiian Electric Suspends Dividend, Draws Down Credit Lines (1)、Hawaiian Electric Cut to ‘B-’, on CreditWatch Negative: S&P (1)（抜粋）
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2023-08-25 04:04:00
