Alexander & Baldwin amends and restates now $500 million revolver

Chicago, Sept. 3 – Alexander & Baldwin, Inc., with several subsidiaries, amended and restated its credit facility that lists Bank of America, NA as administrative agent on Aug. 31, according to an 8-K filing with the Securities and Exchange Commission.

The amendment lifted the size of the revolving commitments to $500 million, from $450 million.

The maturity date was extended to Aug. 29, 2025, with two six-month optional term extensions.

A ratings-based grid was added should the company be rated investment grade by two of the three major ratings agencies. The company, in this instance, would make the irrevocable choice to switch from its current financials-based applicable rate. The ratings-based grid is between Libor plus 72.5 basis points to 140 bps.

However, the financials-based applicable rate grid was amended and was dramatically improved from the company’s perspective. Pricing on that grid gained an additional sixth level, and rates now move between Libor plus 105 bps to 150 bps. Previously, the five tiers shifted between Libor plus 125 bps to 205 bps.

The amended facility eliminates the swing line loan and replaces it with a Libor daily rate loan, in addition to bid loans when the company maintains an investment-grade rating.

If or when Grace Pacific LLC is sold, in whole or substantially in full, to an entity unaffiliated with the company, Grace and its subsidiaries will be automatically released from their respective guaranty obligations.

The company drew $50 million immediately to repay a $50 term loan agreement from Feb. 26, 2018 with Wells Fargo Bank, NA as administrative agent.

The company was required to pay certain upfront fees to the lenders, together with additional transaction fees and expenses including legal fees, for a total of $4 million.

The covenants were also modified.

Bank of America is a letter of credit issuer.

Other lenders are First Hawaiian Bank, Keybank NA and Wells Fargo Bank, NA as syndication agents and letter of credit issuers.

BofA Securities, Inc., First Hawaiian Bank, Keybanc Capital Markets Inc. and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners.

Alexander & Baldwin is a Hawaii-focused land company with interests in real estate development, real estate leasing and agribusiness. It is based in Honolulu.

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