HAWAIIAN HOLDINGS, INC. (HA) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
|
Entry into a Material Definitive Agreement.
|
On November 15, 2016, Hawaiian Airlines, Inc. (the Company), a
wholly-owned subsidiary of Hawaiian Holdings, Inc. (Holdings),
entered into a lease agreement (the Lease) with the Department of
Transportation of the State of Hawaii (DOTA) to lease a cargo and
maintenance hangar at the Honolulu International Airport (the
Hangar). The Lease term (the Term) is 35 years, with an effective
commencement date of the Term of November 1, 2016 (the
Commencement Date).
wholly-owned subsidiary of Hawaiian Holdings, Inc. (Holdings),
entered into a lease agreement (the Lease) with the Department of
Transportation of the State of Hawaii (DOTA) to lease a cargo and
maintenance hangar at the Honolulu International Airport (the
Hangar). The Lease term (the Term) is 35 years, with an effective
commencement date of the Term of November 1, 2016 (the
Commencement Date).
The Hangar is under construction and, to the Lease, the Company
will assume responsibility for completing construction of the
Hangar, subject to various terms, conditions and limitations as
set forth in the Lease. The anticipated cost to the Company to
complete construction of the Hangar is approximately $28 million.
The construction of the Hangar is expected to be completed in
mid-2017.
will assume responsibility for completing construction of the
Hangar, subject to various terms, conditions and limitations as
set forth in the Lease. The anticipated cost to the Company to
complete construction of the Hangar is approximately $28 million.
The construction of the Hangar is expected to be completed in
mid-2017.
Under the Lease, the Companys rental obligation will consist of
Ground Rent, Building Rent and Apron Rent. The Ground Rent will
be approximately $2.16 million per year for the first five years
of the Term and is subject to an increase of 15% every five years
for the second and third five-year periods, after which the
Ground Rent will be equal to the fair market rental value as
determined by appraisal. The Building Rent is expected to be
approximately $1.53 million for the first year of the Term,
subject to credit adjustments in consideration of the Companys
completion of the Hangar. The credit adjustments are expected to
reduce Building Rent over the subsequent 17 years. There will be
no Building Rent for the last 5 years of the Term. The Apron Rent
will be approximately $700,000 per year for the first thirty
years of the Term, after which there will be no Apron Rent. The
Lease provides that for the first year of the Term, the Ground
Rent, Building Rent and Apron Rent will be waived as additional
consideration for the Companys completion of the Hangar.
Ground Rent, Building Rent and Apron Rent. The Ground Rent will
be approximately $2.16 million per year for the first five years
of the Term and is subject to an increase of 15% every five years
for the second and third five-year periods, after which the
Ground Rent will be equal to the fair market rental value as
determined by appraisal. The Building Rent is expected to be
approximately $1.53 million for the first year of the Term,
subject to credit adjustments in consideration of the Companys
completion of the Hangar. The credit adjustments are expected to
reduce Building Rent over the subsequent 17 years. There will be
no Building Rent for the last 5 years of the Term. The Apron Rent
will be approximately $700,000 per year for the first thirty
years of the Term, after which there will be no Apron Rent. The
Lease provides that for the first year of the Term, the Ground
Rent, Building Rent and Apron Rent will be waived as additional
consideration for the Companys completion of the Hangar.
The foregoing description of the Lease does not purport to be
complete and is qualified in its entirety by reference to the
Lease, which will be filed as an exhibit to Holdings Annual
Report on Form 10-K to be filed for the fiscal year ended
December 31, 2016.
complete and is qualified in its entirety by reference to the
Lease, which will be filed as an exhibit to Holdings Annual
Report on Form 10-K to be filed for the fiscal year ended
December 31, 2016.
|
Item 2.03
|
Creation of a Direct Financial Obligation or an Obligation
under an Off-Balance Sheet Arrangement of a Registrant. |
The information set forth in item 1.01 of this Current Report on
Form 8-K is incorporated herein by reference.
Form 8-K is incorporated herein by reference.
Safe Harbor Statement
The information contained herein contains forward-looking
statements with respect to the Lease and the cost and completion
of the Hangar. These forward-looking statements are and will be,
as the case may be, subject to many risks and uncertainties,
which may cause the actual results to be materially different
from any future results, expressed or implied, in these
forward-looking statements. Additional information on such risks
and uncertainties may be found in Holdings Annual Report on Form
10-K for the fiscal year ended December 31, 2015, and subsequent
filings with the Securities and Exchange Commission. Holdings
undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances
that may arise after the date hereof even if experience or future
changes make it clear that any projections or estimates expressed
or implied herein will not be realized.
statements with respect to the Lease and the cost and completion
of the Hangar. These forward-looking statements are and will be,
as the case may be, subject to many risks and uncertainties,
which may cause the actual results to be materially different
from any future results, expressed or implied, in these
forward-looking statements. Additional information on such risks
and uncertainties may be found in Holdings Annual Report on Form
10-K for the fiscal year ended December 31, 2015, and subsequent
filings with the Securities and Exchange Commission. Holdings
undertakes no obligation to publicly update or revise any
forward-looking statements to reflect events or circumstances
that may arise after the date hereof even if experience or future
changes make it clear that any projections or estimates expressed
or implied herein will not be realized.
About HAWAIIAN HOLDINGS, INC. (HA)