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United States. Securities and Exchange Commission

MAUI LAND & PINEAPPLE COMPANY, INC. Restructures Loan Agreement with First Hawaiian Bank

Strategic Insights

— 1 min read

MAUI LAND & PINEAPPLE COMPANY, INC. has made significant changes to its loan agreement with First Hawaiian Bank, extending the maturity date of its revolving line of credit facility from June 2022 to December 2025. The company has released its 800-acre Kapalua Mauka property from collateral, allowing for more flexibility in its financial dealings. This new agreement will provide options for revolving or term loan borrowings and will allow the company to take advantage of lower interest rates.

Key Takeaways:

  • The MAUI LAND & PINEAPPLE COMPANY, INC. has restructured its loan agreement with First Hawaiian Bank, extending the maturity date of its revolving line of credit facility to December 31, 2025.
  • The company has released its 800-acre Kapalua Mauka property from collateral, providing more flexibility in its financial dealings.
  • The agreement provides options for revolving or term loan borrowings and includes interest rate swap options for term loan borrowing.
  • Revolving borrowing may be converted to a term loan for up to a 10-year term, which could extend maturity to December 31, 2035.
  • The company's premier commercial properties, totaling approximately 30,000 square feet of leased space in the Kapalua Resort, remain pledged as security for the Credit Facility.
  • At December 23, 2021, the Company had no outstanding debt under the Credit Facility.

Statistics:

  • The revolving line of credit facility's maturity date has been extended from June 2022 to December 31, 2025.
  • The company's 800-acre Kapalua Mauka property has been released from collateral.
  • The aggregate outstanding principal balance of the Credit Facility shall not exceed $15.0 million.
  • Interest on revolving borrowing is at the Bank's prime rate minus 1.125 percentage points.
  • Interest on term loan borrowing is fixed at the Bank's commercial loan rates, with interest rate swap options available.

Sources:

  • UNITED STATES SECURITIES AND EXCHANGE COMMISSION, Form 8-K (Current Report) (December 28, 2021)
  • MAUI LAND & PINEAPPLE COMPANY, INC., Fourth Loan Modification Agreement and Second Amended and Restated Credit Agreement (December 23, 2021)

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