BUSINESS BRIEFS
State sells $52M in bonds

Advertiser Staff and News Services

The state yesterday sold $52 million in harbors revenue bonds at 4.78 percent interest to refund bonds issued in 1993 and 1994 at higher rates.

The interest is among the lowest for the state and follows favorable credit reviews by rating agencies Moody's, Standard & Poor's and Fitch Ratings.

Verizon Hawaii debt downgraded

Fitch Ratings has downgraded $425 million in Verizon Hawaii debt on concerns that a successful sale to the Carlyle Group will add to Verizon Hawaii's debt load.

The $1.65 billion deal may result in further downgrades depending on how the business ultimately is structured, Fitch said.

Fitch reduced the rating on Verizon Hawaii's senior unsecured debt by four notches, from "A-" to "BB+." That's below investment grade, also known as junk bond status. Fitch also cut the company's first mortgage bonds four notches, from "A" to "BBB-," which is still considered investment grade.

Ann Nishida, a Verizon Hawaii spokeswoman, said the company disagreed with Fitch's downgrades and called the action premature.

Firm buys more Kapolei land

California investment firm Jupiter Holdings LLC is buying more Kapolei industrial property — 54 acres adjacent to Kapolei Business Park where the company is buying 91 acres in a separate deal announced last month.

Campbell Estate, the seller of the 54 acres, confirmed it has a contract with Jupiter at an undisclosed price.

The 54 acres of raw land were envisioned by the estate as a future phase of Kapolei Business Park, a light industrial subdivision that an estate affiliate is selling to Jupiter Holdings. Both transactions are subject to closing.

Castle to run Island Colony

Castle Resorts & Hotels is taking over management of the hotel condominium Island Colony at 445 Seaside Ave.

Marc Hotels and Resorts Inc. previously managed the property.

Castle is retaining nearly all of the 60 employees affected.