Hawaiian Electric Seeks Expert Advice to Strengthen Utility Amidst Challenges

Wall Street bond brokers are reaching out to investors to gauge interest in discounted bonds tied to Hawaiian Electric Industries, as the utility faces potential liabilities following deadly wildfires in Maui. Jefferies Financial Group and Seaport Group are among the firms soliciting interest in the rarely traded private placement notes at distressed levels, while several banks are making markets in the company's municipal bonds. The utility's muni bonds have plunged since the wildfires, and S&P Global Ratings recently downgraded Hawaiian Electric Industries to junk. There is speculation that the company may consider seeking Chapter 11 protection to address its liabilities, similar to PG&E Corp. in 2019.