BUSINESS BRIEFS
Hoku secures $185 million credit
Advertiser Staff
Hoku Scientific Inc., the Kapolei-based technology company, said it has signed a nonbinding agreement with Merrill Lynch to borrow up to $185 million.
The company said the money would be used to construct and start up the company's planned polysilicon production plant in Pocatello, Idaho. Polysilicon is a material used in making solar cells.
The closing of the loan is subject to conditions, including Hoku Scientific providing its Hoku Materials unit with about $35 million in cash for use in building the approximately $290 million plant. Hoku said it would have to secure additional financing to meet that and other capital requirements.
Hoku recently announced a new agreement to supply Solarfun Power Holdings Co. with polysilicon. The deal is worth as much as $306 million, with the first shipments set for the second half of 2009. Since June, Hoku has signed polysilicon supply contracts that could be worth more than $1.5 billion through 2019, including an agreement with Suntech Power Holdings Co. Ltd. that could reach $678 million.
TESORO MAY BOOST OIL PROCESSING
Tesoro Corp. said it may spend as much as $175 million to boost processing of high-sulfur crude oil at its Hawai'i oil refinery.
The potential project was among the San Antonio, Texas-based company's plans discussed during a presentation to financial analysts today. The company, which owns seven refineries in the U.S., plans to boost capital spending in coming years.
The company said it is studying a $100 million to $175 million project that would increase the O'ahu refinery's "sour" crude oil handling capabilities and enhancing naphtha handling to remove sulfur and benzene.
Tesoro said the project would begin late next year and be completed in the second quarter of 2010 if it decides to move ahead.
AIRLINE CAPACITY TO ISLES SEEN FALLING
Airline capacity on flights to Hawai'i is expected to fall to 2.58 million seats this winter, a 1.2 percent decline from the same period last year, according to a report released yesterday by the state Department of Business, Economic Development and Tourism.
Domestic scheduled service to Hawai'i for the December-February period is expected to climb to 1.9 million air seats, a 3.4 percent increase over last winter. U.S. West seats are expected to rise 4.4 percent during the period, reaching 1.64 million. U.S. East air seats are forecast to fall by 2.3 percent to 268,807.
International air seats are forecast to fall 12.2 percent to 672,381. Air seats from Japan are projected to fall 10.8 percent to 422,963.
PROSPECT FUND RAISES STAKE IN JAPAN
Prospect Asset Management Inc., a Hawai'i Kai-based investment fund, raised its stake in Japanese property trust FC Residential Investment Co., Bloomberg News reported. The stake adds to a concentration of ownership that threatens a tax break.
Bloomberg reported Prospect increased its holding to 43 percent from 42 percent as of Nov. 29, a filing at Japan's Ministry of Finance shows.
Japanese property trusts are exempt from corporate tax if they meet certain conditions, including a combined stake of no more than 50 percent for their three largest owners, the news service said. A tax liability would reduce funds available for dividends.
