HONOLULU - Alexander & Baldwin, Inc. (NYSE: ALEX), a leading commercial real estate company in Hawai'i, announced on Monday the successful completion of a $60 million unsecured note at a 6.09% interest rate, with a maturity date set for April 15, 2032. The Series M Note is part of a private placement under the company's existing agreement with Prudential Investment Management, Inc.
The proceeds from the Series M Note issuance are earmarked for the repayment of the mortgage note secured by Laulani Village, which matures on May 1, 2024. Additional funds will be allocated for general corporate purposes. Interest payments on the note are scheduled on a semi-annual basis, with the principal due upon the note's maturity.
Clayton Chun, A&B's executive vice president, chief financial officer, and treasurer, expressed satisfaction with the transaction, noting its alignment with the company's financial strategy. "We are pleased to have completed this financing with Prudential, which allows us to extend our debt maturity and maintain a balance sheet made up primarily of fixed-rate unsecured debt," said Chun. He also mentioned the company's plan to use a Forward Interest Rate Swap at a 4.88% fixed rate to stabilize variable interest payments on their revolving credit facility starting May 1, 2024.
Alexander & Baldwin, Inc. stands as the only publicly-traded real estate investment trust focused exclusively on Hawai'i commercial real estate. The company boasts ownership of approximately 3.9 million square feet of commercial space in the state, including retail centers, industrial assets, office properties, and ground lease assets.
This financial move is in line with A&B's long-standing presence in Hawai'i's economy and its role in various sectors, including agriculture, transportation, tourism, construction, and real estate. The information provided in this article is based on a press release statement and should be evaluated alongside other market risks and company filings with the Securities and Exchange Commission.
InvestingPro Insights
Alexander & Baldwin, Inc. (NYSE: ALEX) has recently navigated a strategic financial move, which aligns with the company's aim to strengthen its balance sheet and optimize its financial structure. To provide a deeper understanding of ALEX's financial health and market position, here are some key metrics and insights from InvestingPro:
InvestingPro Data:
- Market Cap (Adjusted): $1.14B USD
- P/E Ratio (Adjusted) as of Q4 2023: 24.94
- Dividend Yield as of April 2023: 5.54%
These figures suggest that ALEX is a mid-cap company with a moderate earnings valuation and offers an attractive dividend yield, which is a positive sign for income-focused investors. The company's commitment to raising its dividend for three consecutive years is a testament to its financial stability and shareholder-friendly approach.
InvestingPro Tips:
1. ALEX is trading at a low P/E ratio relative to near-term earnings growth, which could indicate that the stock is undervalued compared to its earnings potential.
2. Analysts predict the company will be profitable this year, which aligns with the company's positive EBITDA growth over the last twelve months.
For investors seeking a deeper analysis, InvestingPro provides additional tips on ALEX and can help assess the company's future prospects. By using the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, unlocking further insights into ALEX's market performance and financials. There are 6 more InvestingPro Tips available for ALEX, offering a comprehensive look at the company's financial health and investment potential.
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