#USA #Honolulu #Credit Facility #Alexander Baldwin #Term Loan

Alexander & Baldwin Enhances Financial Strength with New Loan

In a significant move aimed at fortifying its financial structure, Alexander & Baldwin, Inc. (NYSE: ALEX) has announced an amendment to its unsecured revolving credit facility. The company not only maintained its existing borrowing capacity of $450 million but also rolled out a new $200 million term loan, which it fully drew at closing.

This financial maneuver is designed to bolster the company's capital structure while providing enhanced liquidity, thereby reducing the overall cost of capital. The proceeds from the new term loan have been used to repay an outstanding balance of $191 million on the revolving credit facility. This strategic reallocation effectively replenishes the company's revolving capacity while also extending the weighted average maturity of its borrowings. The term loan is set to mature on November 3, 2030, offering a longer period for repayment that is in alignment with the company’s growth strategy.

Contemplating this change, Clayton Chun, Executive Vice President and CFO of Alexander & Baldwin, remarked on the benefits that this refinancing brings. He noted that the amendment would not only strengthen the company's balance sheet by increasing liquidity but also by reducing interest expenses. As a result, this will extend the weighted average maturity of the company's borrowings by approximately one year. Such enhancements undoubtedly improve the financial flexibility of Alexander & Baldwin, enabling the company to pursue its strategic growth initiatives more effectively.

To further align its debt structure with its long-term strategy, Alexander & Baldwin has entered into interest rate swap agreements for the full amount of the term loan. By locking in the terms, these swaps provide stability against potential fluctuations in interest rates, with the current applicable spread resulting in an all-in weighted average fixed rate of 4.69%. This proactive approach to managing financial risk underscores the company’s commitment to maintaining robust financial health.

About Alexander & Baldwin

Founded 155 years ago, Alexander & Baldwin, Inc. is the only publicly traded real estate investment trust in the United States focused exclusively on commercial real estate located in Hawai'i. The company holds the distinction of being the state's largest owner of grocery-anchored neighborhood shopping centers. With approximately 4 million square feet of commercial space under management, Alexander & Baldwin operates a diverse portfolio that includes 21 retail centers, 14 industrial assets, and four office properties, along with 146 acres of ground lease assets.

As the economies and industries in Hawai'i have evolved, Alexander & Baldwin has played a pivotal role in the development of various sectors, including agriculture, transportation, tourism, construction, residential, and commercial real estate. The company's long-standing history showcases its ability to adapt and lead within these landscapes.

As we look to the future, the enhancements made through the recent credit facility amendment and term loan demonstrate Alexander & Baldwin's commitment to sustaining growth and improving its market presence. For further insights and updates regarding the company's strategies, visit their website at www.alexanderbaldwin.com.