Hawaiian Electric slumps after disclosing $500 mln stock offering plan

Hawaiian Electric Industries

23/09/2024 23:16

Sept 23 (Reuters) - 
    Hawaiian Electric Industries  HE.N  disclosed on Monday
plans to sell up to $500 million worth of its common stock to
help fund its part of the Maui wildfire settlement, sending its
shares down over 9% in extended trading. 
  
    The parent company of utility Hawaiian Electric said it had
also granted underwriters an option to purchase up to an
additional $75 million worth of its shares as part of the
offering. 
    Earlier this year, the Honolulu-based company raised
going-concern doubts, after disclosing that it lacked a
financing plan for its share of a more than $4 billion
settlement to compensate victims of the 2023 Maui wildfires,
which claimed over 100 lives.
    Lawsuits have claimed that the utility failed to shut off
power lines despite warnings that high winds might blow them
down and spark wildfires.
    Wells Fargo, Guggenheim Securities and Barclays Capital will
act as joint book-runners for the sale, which comes just a week
after the company had disclosed a separate plan to sell up to
$250 million of its common stock.
    Hawaiian Electric had about 110.3 million common shares
outstanding as of August 30, according to a regulatory filing.
    Shares of Hawaii's largest utility company have fallen about
23%, so far this year.

 (Reporting by Vallari Srivastava in Bengaluru; Editing by
Mohammed Safi Shamsi)
 ((Srivastava.Vallari@thomsonreuters.com;))