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Long-term debt | 12 Months Ended
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Dec. 31, 2017
Long-term Debt, Unclassified [Abstract] |
Long-term debt |
6 · Long-term debt
December 31 | 2017 |  |  | 2016 |
(dollars in thousands) |  |  |  |  |
Long-term debt of Utilities, net of unamortized debt issuance costs 1 | $ | 1,368,479 |  |  | $ | 1,319,260 |
Hamakua Energy 4.02% notes, due 2030 | 67,325 |  |  | — |
HEI 2.99% term loan, due 2022 | 150,000 |  |  | — |
HEI 5.67% senior notes, due 2021 | 50,000 |  |  | 50,000 |
HEI 3.99% senior notes, due 2023 | 50,000 |  |  | 50,000 |
HEI term loans LIBOR + 0.75%, paid 2017 | — |  |  | 200,000 |
Less unamortized debt issuance costs | (2,007 | ) |  | (241 | )
| $ | 1,683,797 |  |  | $ | 1,619,019 |
1 | See components of “Total long-term debt” and unamortized debt issuance costs in Hawaiian Electric and subsidiaries’ Consolidated Statements of Capitalization.
As of December 31, 2017, the aggregate principal payments required on the Company’s long-term debt for 2018 through 2022 are $54 million in 2018, $4 million in 2019, $100 million in 2020, $54 million in 2021 and $206 million in 2022. As of December 31, 2017, the aggregate payments of principal required on the Utilities' long-term debt for 2018 through 2022 are $50 million in 2018, nil in 2019, $96 million in 2020, nil in 2021 and $52 million in 2022. The HEI term loans and senior notes contain customary representation and warranties, affirmative and negative covenants and events of default (the occurrence of which may result in some or all of the notes then outstanding becoming immediately due and payable). The HEI term loans and senior notes also contain provisions requiring the maintenance by HEI of certain financial ratios generally consistent with those in HEI’s existing second amended revolving noncollateralized credit agreement, expiring on June 30, 2022. Upon a change of control or certain dispositions of assets (as defined in the Master Note Purchase Agreement dated March 24, 2011), HEI is required to offer to prepay the senior notes. The Utilities’ senior notes contain customary representations and warranties, affirmative and negative covenants, and events of default (the occurrence of which may result in some or all of the notes of each and all of the utilities then outstanding becoming immediately due and payable) and provisions requiring the maintenance by Hawaiian Electric, and each of Hawaii Electric Light and Maui Electric, of certain financial ratios generally consistent with those in Hawaiian Electric’s existing second amended revolving noncollateralized credit agreement, expiring on June 29, 2018, but its term will extend to June 30, 2022, upon approval by the PUC during the initial term. (See Note 5 of the Consolidated Financial Statements). Changes in long-term debt. HEI. On October 6, 2017, HEI entered into a loan agreement with The Bank of Tokyo-Mitsubishi UFJ, Ltd. and drew a $125 million unsecured Eurodollar loan for a term of 364 days at resetting interest periods and rates (described in Note 5 above). HEI used the proceeds of this short-term loan to pay off a $125 million long-term loan maturing on the same date. On November 20, 2017, HEI entered into a $150 million unsecured loan agreement with Bank of America, N.A. (BOA Loan Agreement) at a fixed interest rate of 2.99% with a maturity date of November 20, 2022. The BOA Loan Agreement includes substantially the same financial covenant and customary conditions as the HEI credit agreement described in Note 5 above. Proceeds of the loan were used to repay a $75 million term loan ahead of its March 2018 maturity and to repay $75 million of the $125 million short-term loan drawn on October 6, 2017. The loan under the BOA Loan Agreement may be prepaid in full or in part at any time with a prepayment fee calculated by Bank of America, N.A. Hamakua Energy. On December 26, 2017, Hamakua Energy issued $67.3 million of senior secured notes at a fixed interest rate of 4.02% with quarterly principal and interest payments as defined in the note purchase agreement and a final maturity date of December 31, 2030. The net proceeds were used to pay down an intercompany loan from HEI. HEI used the proceeds primarily to pay down commercial paper. The loan may be prepaid in full or in part with a "make-whole" amount as defined in the agreement. Hawaiian Electric. On June 29, 2017, the DBF for the benefit of the Utilities, issued, at par:
| Refunding Series 2017A Special Purpose Revenue Bonds | Refunding Series 2017B Special Purpose Revenue Bonds
Aggregate principal amount | $125 million | $140 million
Fixed coupon interest rate | 3.10% | 4.00%
Maturity date | May 1, 2026 | March 1, 2037
DBF loaned the proceeds to: |  |
Hawaiian Electric | $62 million | $100 million
Hawaii Electric Light | $8 million | $20 million
Maui Electric | $55 million | $20 million
Proceeds from the sale were applied to redeem at par bonds previously issued by the DBF for the benefit of the Utilities:
| Refunding Series 2007B Special Purpose Revenue Bonds | Series 2007A Special Purpose Revenue Bonds
Aggregate principal amount | $125 million | $140 million
Fixed coupon interest rate | 4.60% | 4.65%
Maturity date | May 1, 2026 | March 1, 2037
On December 14, 2017, Hawaiian Electric and Maui Electric issued, through a private placement pursuant to separate Note Purchase Agreements (the Note Purchase Agreements), $40 million and $10 million, respectively, of Series 2017A unsecured senior notes bearing taxable interest of 4.31%, which are due December 1, 2047 (the Notes) and include substantially the same financial covenants and customary conditions as Hawaiian Electric's credit agreement as described above. Hawaiian Electric is also a party as guarantor under the Note Purchase Agreement entered into by Maui Electric. All the proceeds of the Notes were used by Hawaiian Electric and Maui Electric to finance their capital expenditures and/or to reimburse funds used for the payment of capital expenditures. The Notes may be prepaid in whole or in part at any time at the prepayment price of the principal amount plus a “Make-Whole Amount.”

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