MLP loans to cover Kapalua construction
New loans will finance the billion-dollar revitalization project
Maui Land & Pineapple Co. said yesterday it has taken out a $90 million credit line to help finance the revitalization of its Maui Kapalua Resort.
The money may be used in several projects, including the renovation of the Ritz-Carlton Kapalua and the Kapalua residences, spokeswoman Teri Freitas Gorman said.
The Kapalua development is currently undergoing $500 million in construction, she said, with an estimated total cost of $1 billion.
Wells Fargo bank is providing $60 million of the credit line; American AgCredit, $20 million; and American Savings Bank, $10 million. The new credit line, effective Nov. 15, has a two-year revolving cycle with the option to renew within one year.
Kahului-based MLP borrowed $17 million at closing to repay in full its $16.1 million revolving credit line with Bank of Hawaii and other lenders, according to a filing yesterday with the U.S. Securities and Exchange Commission.
In addition, MLP has a $25 million revolving line of credit with American AgCredit and a $17 million loan from General Electric Co. for the company's agriculture business.
Altogether the Kapalua resort encompasses 23,000 acres and includes three beaches, golf courses and the 548-room Ritz-Carlton.
MLP is adding amenities including a village in the middle of the resort, a new spa, a private golf course, and walking and biking trails to be completed in 2012. The development includes new residences at Kapalua Mauka, which is anticipated to be a 20-year build out.
MLP said in March that it sold the land beneath the Ritz-Carlton for $25 million and an ownership interest in the luxury hotel to hotel owner Kapalua/Gengate Holdings Inc. in exchange for a 21.43 percent ownership interest in the last remaining hotel within the resort.