Exhibit 10.2

 

EXECUTION COPY

 

AMENDMENT NO. 1

 

Dated as of December 5, 2011

 

to

 

CREDIT AGREEMENT

 

Dated as of May 7, 2010

 

THIS AMENDMENT NO. 1 (“Amendment No. 1”) is made as of December 5, 2011 by and
among Hawaiian Electric Company, Inc. (the “Borrower”), the financial
institutions listed on the signature pages hereof (collectively, the “Lenders”)
and JPMorgan Chase Bank, N.A., as Administrative Agent (the “Administrative
Agent”), under that certain Credit Agreement dated as of May 7, 2010 by and
among the Borrower, the Lenders and the Administrative Agent (the “Credit
Agreement”).  Capitalized terms used herein and not otherwise defined herein
shall have the respective meanings given to them in the Credit Agreement.

 

WHEREAS, the Borrower, the Lenders party hereto and the Administrative Agent
have agreed to amend the Credit Agreement on the terms and conditions set forth
herein;

 

NOW, THEREFORE, in consideration of the premises set forth above, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Borrower, the
Lenders party hereto and the Administrative Agent have agreed to the following
amendments to the Credit Agreement.

 

1.         AMENDMENTS TO CREDIT AGREEMENT.  EFFECTIVE AS OF THE DATE OF
SATISFACTION OF THE CONDITIONS PRECEDENT SET FORTH IN SECTION 2 BELOW (THE
“AMENDMENT NO. 1 EFFECTIVE DATE”), THE CREDIT AGREEMENT IS HEREBY AMENDED AS
FOLLOWS:

 

(A)        SECTION 1.01 OF THE CREDIT AGREEMENT IS HEREBY AMENDED TO INSERT THE
FOLLOWING DEFINITION IN THE APPROPRIATE ALPHABETICAL ORDER:

 

“AMENDMENT NO. 1 EFFECTIVE DATE” MEANS DECEMBER 5, 2011.

 

(B)        THE DEFINITIONS OF “APPLICABLE MARGIN”, “COMMITMENT TERMINATION DATE”
AND “PERMITTED INVESTMENTS” APPEARING IN SECTION 1.01 OF THE CREDIT AGREEMENT
ARE HEREBY AMENDED AND RESTATED IN THEIR ENTIRETY TO READ AS FOLLOWS:

 

“Applicable Margin” means with respect to: (a) any Eurodollar Borrowings and any
Letters of Credit, at all times during which the applicable Pricing Level set
forth below is in effect, the percentage set forth below under the heading
“Eurodollar Margin” and adjacent to such Pricing Level, (b) any ABR Borrowings,
at all times during which the applicable Pricing Level set forth below is in
effect, the percentage set forth below under the heading “ABR Margin” and
adjacent to such Pricing Level and (c) with respect to the commitment fee
payable under Section 3.03(a), at all times during which the applicable Pricing
Level set forth below is in effect, the percentage set forth below under the
heading “Commitment Fee Rate” and adjacent to such Pricing Level, in each case,
subject to the provisos set forth below:

 

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 Pricing Level

 

Issuer Ratings
(S&P/Moody’s)

 

Commitment
Fee Rate

 

Eurodollar
Margin

 

ABR
Margin

 I

 

(A-/A3) or higher

 

 

0.20%

 

1.00%

 

0.00%

 II

 

(BBB+/Baa1)

 

 

0.225%

 

1.25%

 

0.25%

 III

 

(BBB/Baa2)

 

 

0.25%

 

1.50%

 

0.50%

 IV

 

(BBB-/Baa3)

 

 

0.30%

 

1.75%

 

0.75%

 V

 

(BB+/Ba1) or lower

 

 

0.35%

 

2.00%

 

1.00%

 

IF THE APPLICABLE ISSUER RATINGS BY S&P AND MOODY’S ARE SPLIT-RATED (I) BY ONE
RATING CATEGORY, THE PRICING LEVEL SHALL BE DETERMINED BY THE HIGHER OF THE TWO
(E.G., AN ISSUER RATING OF BBB-/BAA2 RESULTS IN PRICING LEVEL III) AND (II) BY
MORE THAN ONE RATING CATEGORY, THE PRICING LEVEL SHALL BE DETERMINED BY THE
LEVEL ONE BELOW THE HIGHER RATING BY EITHER S&P OR MOODY’S (E.G., AN ISSUER
RATING OF BBB-/BAA1 RESULTS IN PRICING LEVEL III AND AN ISSUER RATING OF
BBB+/BAA3 RESULTS IN PRICING LEVEL III). EACH CHANGE IN THE APPLICABLE MARGIN
SHALL APPLY DURING THE PERIOD COMMENCING ON THE EFFECTIVE DATE OF SUCH CHANGE
AND ENDING ON THE DATE IMMEDIATELY PRECEDING THE EFFECTIVE DATE OF THE NEXT SUCH
CHANGE.  IF THE RATING SYSTEM OF S&P OR MOODY’S SHALL CHANGE, OR IF EITHER SUCH
RATING AGENCY SHALL CEASE TO BE IN THE BUSINESS OF RATING CORPORATE DEBT
OBLIGATIONS, THE BORROWER AND THE ADMINISTRATIVE AGENT (IN CONSULTATION WITH THE
LENDERS) SHALL NEGOTIATE IN GOOD FAITH TO AMEND THIS DEFINITION TO REFLECT SUCH
CHANGED RATING SYSTEM OR THE UNAVAILABILITY OF RATINGS FROM SUCH RATING AGENCY
AND, PENDING THE EFFECTIVENESS OF ANY SUCH AMENDMENT, THE APPLICABLE MARGIN
SHALL BE DETERMINED BY REFERENCE TO THE RATING MOST RECENTLY IN EFFECT PRIOR TO
SUCH CHANGE OR CESSATION.

 

“Commitment Termination Date” means the earliest of (a) December 3, 2012,
subject to automatic extension to the date, and upon satisfaction of the
conditions, set forth in Section 2.05(a), (b) the date on which the Commitments
are terminated in whole pursuant to Section 2.05 and (c) the date the
Commitments are terminated in whole pursuant to Article 8.

 

“Permitted Investments” means, at any time, investments as allowed in accordance
with the HECO Cash Management Investment Guidelines dated August 12, 2011, as
disclosed to the Administrative Agent prior to the Amendment No. 1 Effective
Date and as the same may be amended from time to time with the written consent
of the Administrative Agent, such written consent not to be unreasonably delayed
or withheld.

 

(C)        SECTION 2.05(A) OF THE CREDIT AGREEMENT IS HEREBY AMENDED AND
RESTATED IN ITS ENTIRETY TO READ AS FOLLOWS:

 

“(a)      Unless previously terminated, the Revolving Commitments and the Letter
of Credit Commitments shall terminate on the Commitment Termination Date;
provided however, upon delivery to the Administrative Agent of a copy of an
order or approval issued by the PUC, certified by a Financial Officer to be true
and complete, which is final and not subject to review or appeal, that approves
the extension of the date set forth in clause (a) of the definition of
Commitment Termination Date, then the date set forth in clause (a) of the
definition of Commitment Termination Date shall be automatically extended to the
latest date permitted by such order or approval but in no event later than
December 5, 2016.”

 

2.         CONDITIONS OF EFFECTIVENESS.  THE EFFECTIVENESS OF THIS AMENDMENT
NO. 1 IS SUBJECT TO THE CONDITIONS PRECEDENT THAT THE ADMINISTRATIVE AGENT SHALL
HAVE RECEIVED (I) COUNTERPARTS OF THIS AMENDMENT NO. 1 DULY EXECUTED BY THE
BORROWER, THE LENDERS AND THE ADMINISTRATIVE AGENT, (II) FROM THE BORROWER, FOR
THE ACCOUNT OF EACH LENDER THAT EXECUTES AND DELIVERS ITS COUNTERPART HERETO BY
SUCH TIME AS IS REQUESTED BY THE ADMINISTRATIVE AGENT, AN AMENDMENT FEE IN AN
AMOUNT EQUAL TO 0.20% OF THE SUM OF SUCH LENDER’S REVOLVING COMMITMENT UNDER THE
CREDIT AGREEMENT, (III) FROM THE BORROWER,

 

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PAYMENT AND/OR REIMBURSEMENT OF THE ADMINISTRATIVE AGENT’S AND ITS AFFILIATES’
FEES AND EXPENSES (INCLUDING LEGAL FEES AND EXPENSES) IN CONNECTION WITH THIS
AMENDMENT NO. 1 AND THE OTHER LOAN DOCUMENTS AND (IV) SUCH INSTRUMENTS,
DOCUMENTS AND OPINIONS AS ARE REASONABLY REQUESTED BY THE ADMINISTRATIVE AGENT
IN CONNECTION WITH THIS AMENDMENT NO. 1 AND THE CREDIT AGREEMENT.  THE
ADMINISTRATIVE AGENT SHALL NOTIFY THE BORROWER AND THE OTHER CREDIT PARTIES OF
THE AMENDMENT NO. 1 EFFECTIVE DATE, AND SUCH NOTICE SHALL BE CONCLUSIVE AND
BINDING.

 

3.         REPRESENTATIONS AND WARRANTIES OF THE BORROWER.

 

(A)        THE BORROWER HEREBY REPRESENTS AND WARRANTS AS FOLLOWS:

 

I.          THIS AMENDMENT NO. 1 AND THE CREDIT AGREEMENT AS AMENDED HEREBY
CONSTITUTE LEGAL, VALID AND BINDING OBLIGATIONS OF THE BORROWER AND ARE
ENFORCEABLE AGAINST THE BORROWER IN ACCORDANCE WITH THEIR TERMS, SUBJECT TO
APPLICABLE BANKRUPTCY, INSOLVENCY, REORGANIZATION, MORATORIUM OR OTHER LAWS
AFFECTING CREDITORS’ RIGHTS GENERALLY AND SUBJECT TO GENERAL PRINCIPLES OF
EQUITY, REGARDLESS OF WHETHER CONSIDERED IN A PROCEEDING IN EQUITY OR AT LAW.

 

II.          AS OF THE DATE HEREOF AND GIVING EFFECT TO THE TERMS OF THIS
AMENDMENT NO. 1, (I) THERE EXISTS NO DEFAULT AND (II) THE REPRESENTATIONS AND
WARRANTIES SET FORTH IN ARTICLE 4 OF THE CREDIT AGREEMENT (OTHER THAN THE
REPRESENTATIONS AND WARRANTIES IN SECTIONS 4.04(B) AND 4.06 OF THE CREDIT
AGREEMENT), AS AMENDED HEREBY, ARE TRUE AND CORRECT IN ALL MATERIAL RESPECTS,
EXCEPT TO THE EXTENT SUCH REPRESENTATIONS AND WARRANTIES RELATE TO ANY EARLIER
DATE, IN WHICH CASE SUCH REPRESENTATIONS AND WARRANTIES SHALL HAVE BEEN TRUE AND
CORRECT ON AND AS OF SUCH EARLIER DATE.

 

4.         REFERENCE TO AND EFFECT ON THE CREDIT AGREEMENT.

 

(A)        UPON THE EFFECTIVENESS HEREOF, EACH REFERENCE TO THE CREDIT AGREEMENT
IN THE CREDIT AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL MEAN AND BE A REFERENCE
TO THE CREDIT AGREEMENT AS AMENDED HEREBY.

 

(B)        EXCEPT AS SPECIFICALLY AMENDED ABOVE, THE CREDIT AGREEMENT AND ALL
OTHER DOCUMENTS, INSTRUMENTS AND AGREEMENTS EXECUTED AND/OR DELIVERED IN
CONNECTION THEREWITH SHALL REMAIN IN FULL FORCE AND EFFECT AND ARE HEREBY
RATIFIED AND CONFIRMED.

 

(C)        THE EXECUTION, DELIVERY AND EFFECTIVENESS OF THIS AMENDMENT NO. 1
SHALL NOT OPERATE AS A WAIVER OF ANY RIGHT, POWER OR REMEDY OF THE
ADMINISTRATIVE AGENT OR THE LENDERS, NOR CONSTITUTE A WAIVER OF ANY PROVISION OF
THE CREDIT AGREEMENT OR ANY OTHER DOCUMENTS, INSTRUMENTS AND AGREEMENTS EXECUTED
AND/OR DELIVERED IN CONNECTION THEREWITH.

 

5.         GOVERNING LAW.  THIS AMENDMENT NO. 1 SHALL BE CONSTRUED IN ACCORDANCE
WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK.

 

6.         HEADINGS.  SECTION HEADINGS IN THIS AMENDMENT NO. 1 ARE INCLUDED
HEREIN FOR CONVENIENCE OF REFERENCE ONLY AND SHALL NOT CONSTITUTE A PART OF THIS
AMENDMENT NO. 1 FOR ANY OTHER PURPOSE.

 

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7.         COUNTERPARTS.  THIS AMENDMENT NO. 1 MAY BE EXECUTED BY ONE OR MORE OF
THE PARTIES HERETO ON ANY NUMBER OF SEPARATE COUNTERPARTS, AND ALL OF SAID
COUNTERPARTS TAKEN TOGETHER SHALL BE DEEMED TO CONSTITUTE ONE AND THE SAME
INSTRUMENT.  SIGNATURES DELIVERED BY FACSIMILE OR PDF SHALL HAVE THE SAME FORCE
AND EFFECT AS MANUAL SIGNATURES DELIVERED IN PERSON.

 

[Signature Pages Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to be
duly executed by their respective authorized officers as of the day and year
first above written.

 

 

 

HAWAIIAN ELECTRIC COMPANY, INC.,

 

as a Borrower

 

 

 

 

 

By:

  /s/ Tayne S. Y. Sekimura

 

 

Name:  Tayne S. Y. Sekimura

 

Title:  Senior Vice President & Chief Financial Officer

 

 

 

 

 

By:

  /s/ Patsy H. Nanbu

 

 

Name:  Patsy H. Nanbu

 

Title:  Controller

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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JPMORGAN CHASE BANK, N.A.,

 

as Administrative Agent, as Issuing Bank and as a Lender

 

 

 

 

 

By:

/s/ Ling Li

 

Name: Ling Li

 

Title: Vice President

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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BANK OF HAWAII, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

 

 

By:

/s/ Anna Hu

 

Name: Anna Hu

 

Title: Vice President

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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US BANK NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a Lender

 

 

 

 

 

 

 

By:

/s/ Holland H. Williams

 

Name: Holland H. Williams

 

Title: AVP & Portfolio Manager

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Co-Syndication Agent and as a
Lender

 

 

 

 

 

 

 

By:

/s/ Yann Blindert

 

Name: Yann Blindert

 

Title: Director

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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BANK OF AMERICA, N.A., as a Co-Documentation Agent and as a Lender

 

 

 

 

 

By:

/s/ Gordon H. Gray

 

 

Name: Gordon H. Gray

 

Title: Senior Vice President

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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UNION BANK, N.A., as a Co-Documentation Agent and as a Lender

 

 

 

 

 

 

By:

/s/ Robert J. Olson

 

 

Name: Robert J. Olson

 

Title: Senior Vice President

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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THE BANK OF NEW YORK MELLON, as a Lender

 

 

 

 

 

 

By:

/s/ Mark W. Rogers

 

 

Name: Mark W. Rogers

 

Title: Vice President

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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GOLDMAN SACHS BANK USA, as a Lender

 

 

 

 

 

 

By:

/s/ Mark Walton

 

 

Name: Mark Walton

 

Title: Authorized Signatory

 

 

Signature Page to Amendment No. 1

Hawaiian Electric Company, Inc.

Credit Agreement dated as of May 7, 2010

 

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