Hawaiian Electric Industries, Inc. - HE STOCK NEWS

Hawaiian Electric (NYSE: HE) has issued a statement in response to reports from the Maui Fire Department and ATF regarding the August 2023 Maui wildfires. The reports largely affirmed the original timeline of events, concluding that Hawaiian Electric equipment damaged by high winds caused a morning fire, which was initially contained but later reignited, leading to the devastating afternoon fire in Lahaina.

The company acknowledges its role in the morning fire and expresses deep regret. Hawaiian Electric emphasizes that the destruction resulted from multiple factors and actions of various parties. In response, the company has implemented significant measures to reduce wildfire risks, including a $110 million investment in 2024 for infrastructure strengthening, enhanced vegetation management, and wildfire prevention devices. Additionally, Hawaiian Electric launched a Public Safety Power Shutoff program and is installing AI-enabled fire detection cameras and weather stations.

Hawaiian Electric Industries (NYSE: HE) has successfully closed an equity offering, raising $558 million in net proceeds at $9.25 per share. The funds will be used to contribute to the Maui wildfire tort litigation settlement and for general corporate purposes. HEI is now prepared to pre-fund its expected first settlement payment of approximately $478 million, due no sooner than mid-2025.

HEI and Hawaiian Electric's total payment obligation is $1.91 billion, to be paid in four equal annual installments. This proactive financing approach is seen as a significant step towards resolving the going concern assessment disclosed in August. The global settlement details are still being finalized and will require judicial review and approval once a final agreement is signed.

Hawaiian Electric Industries (NYSE: HE) has priced its public offering of 54,054,054 common stock shares at $9.25 per share. The offering is expected to close on September 25, 2024, subject to customary conditions. HEI has granted underwriters an option to purchase up to an additional 8,108,108 shares. The company intends to use the net proceeds to fund its contribution to the expected Maui wildfire tort litigation settlement and for general corporate purposes. Wells Fargo Securities, and Barclays Capital Inc. are the joint lead book-running managers, with Guggenheim Securities, as a book-running manager. The offering is made through a prospectus supplement under HEI's effective registration statement on Form S-3ASR.

Hawaiian Electric Industries (NYSE: HE) has announced plans to offer $500 million worth of common stock shares. The company will grant underwriters an option to purchase an additional $75 million of shares. HEI intends to use the net proceeds to fund its contribution to the expected Maui wildfire tort litigation settlement and for general corporate purposes.

The offering will be managed by Wells Fargo Securities, Barclays Capital as joint lead book-running managers, and Guggenheim Securities as a book-running manager. The stock offering will be made through a prospectus supplement under HEI's effective registration statement on Form S-3ASR, as filed with the SEC.

Hawaiian Electric Industries (NYSE: HE) reported a net loss of $1.30 billion, or $11.74 per share, for Q2 2024. This includes a $1.71 billion loss from estimated wildfire liabilities, an $82.2 million loss from American Savings Bank's goodwill impairment, and $9.8 million in other Maui wildfire-related expenses. Excluding these items, core net income was $49.1 million.

The company announced an agreement to settle all tort claims related to the Maui wildfires. Hawaiian Electric's net loss was $1,229.4 million, while American Savings Bank reported a net loss of $45.8 million. The utility dividend to HEI has been suspended due to going concern assessments.

Hawaiian Electric Industries (NYSE: HE) and its subsidiary, Hawaiian Electric Company, have reached a $4 billion settlement agreement with multiple parties to resolve all tort claims related to the August 2023 Maui wildfires. HEI and Hawaiian Electric's contribution is $1.99 billion, to be paid in four installments. The settlement, which requires final documentation and court approval, includes no admission of liability.

The agreement involves the State of Hawaiʻi, County of Maui, Kamehameha Schools, West Maui Land Co., Hawaiian Telcom, and Spectrum/Charter Communications. It aims to resolve claims among defendants and with individual and class plaintiffs. The settlement is conditional on resolving insurance company claims without additional payments from defendants.

HEI is developing a financing plan for the settlement, considering a mix of debt, common equity, and equity-linked securities. Payments are expected to begin no earlier than mid-2025, pending judicial approval.

American Savings Bank (ASB), a subsidiary of Hawaiian Electric Industries (NYSE: HE), reported a Q2 2024 net loss of $45.8 million, primarily due to an after-tax goodwill impairment of $66.1 million. Excluding this impairment and Maui wildfire-related expenses, ASB's core net income was $20.7 million, slightly down from $20.9 million in Q1 2024 but up from $20.2 million in Q2 2023. The bank's net interest margin expanded to 2.79%, up 4 basis points from the previous quarter. ASB's parent company, HEI, is conducting a strategic review of options for the bank, which led to the non-cash goodwill impairment. Despite this, ASB maintains strong liquidity and ability to serve customers' needs.

Hawaiian Electric Industries (HEI) (NYSE: HE) has announced the dates for its second quarter 2024 financial results. HEI will release its results on August 9, followed by a webcast and conference call at 10:30 a.m. Hawaii time (4:30 p.m. Eastern time). American Savings Bank (ASB), a wholly owned indirect subsidiary of HEI, will announce its Q2 2024 results on July 30.

Investors can access the conference call by dialing 1-888-660-6377 (U.S.) or 1-929-203-0797 (international) with passcode 2393042. Presentation materials and audio will be available on HEI's website. A replay will be accessible online and via phone until August 23. HEI encourages investors to monitor its website for additional disclosures and to sign up for e-mail alerts.

On June 27, 2024, Hawaiian Electric, a subsidiary of Hawaiian Electric Industries (NYSE: HE), received approval from the Hawaii Public Utilities Commission (PUC) for a $250 million asset-based lending (ABL) facility. This revolving credit agreement uses certain accounts receivable as collateral and is detailed in HEI's SEC form 8-K filed on May 23, 2024. The approval, expedited at Hawaiian Electric's request, aids in managing liquidity and supports operational activities, especially in light of ongoing litigation related to the Maui wildfires. The PUC’s Decision and Order (number 40866) can be accessed publicly on their website.