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Alexander & Baldwin gets $150 million bridge loan, increases revolver
By Angela McDaniels
Tacoma, Wash., Dec. 20 - Alexander & Baldwin, Inc. entered into a $150 million bridge loan and increased its revolving credit facility to $350 million from $260 million on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.
The bridge loan bears interest at Libor plus 300 basis points and matures on June 18, 2014.
Subsidiary Alexander & Baldwin, LLC is the borrower, and the parent company is the guarantor. Bank of America, NA is the administrative agent.
The company borrowed $60 million under the bridge loan to finance a portion of its $373 million purchase of commercial properties in Hawaii from Kaneohe Ranch and the Harold K.L. Castle Foundation.
The bridge loan requires mandatory prepayments of principal using net proceeds primarily from the planned sale of a property scheduled to be sold for the purpose of funding the Kaneohe Ranch transaction.
Revolver amendment
In addition to increasing the revolver's size, the company increased the sublimit for swingline loans to $80 million from $50 million and the uncommitted increase option to $100 million.
Grace Pacific LLC was added as co-borrower, Alexander & Baldwin, LLC was added as guarantor, and some covenants were modified to account for the company's acquisition of Grace.
Alexander & Baldwin said the amendments were undertaken to consolidate debt facilities and to increase the company's available borrowing capacity due to the Grace acquisition.
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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