State sells $721.6 million in bonds

Hawaii sold $721.6 million worth of general obligation bonds yesterday.

The sale included $500 million of taxable Build America Bonds for capital improvement projects. The state initially expected to sell $312 million, but favorable market conditions and strong demand for the bonds increased the sale, according to the governor's office. The net interest rate on those bonds was 3.27 percent.

The state also sold $221.6 million of tax-exempt bonds at an average interest rate of 2.79 percent to refinance bonds currently outstanding. It is expected to generate debt service savings of about $90 million in fiscal 2010 and 2011.

Moody's, Standard and Poor, and Fitch have rated the state's bonds at Aa2, AA and AA, respectively.

State targets American Legacy Group

The state Insurance Division has initiated legal action against American Legacy Group Legal Plan LLC and its plan administrator, Daniel Y. Doi, who faces thousands of dollars in fines and a shutdown order from the state.

The division alleges that the plan and Doi failed to provide legal services and refunds to several of its customers. The state Department of Commerce and Consumer Affairs has received eight complaints about the company, an agency spokeswoman said.

American Legacy also failed to comply with the Prepaid Legal Services law and various subpoenas made by the Hawaii Insurance Division. Since its inception in 2004, the company allegedly has failed to file annual reports to the state.

There is no number listed for either Doi or American Legacy. According to the division's complaint, Doi allegedly has provided disconnected phone numbers for people to call him.

Hawaii Energy lowers rebate

Hawaii Energy has adjusted its solar rebate to $750 from $1,000 starting this month in order to meet increased customer demand without running short on funds.

The move is because demand for solar hot water heaters is forecast to exceed solar rebate program budgets over the coming months, according to a news release. The rebate applies to qualifying hot water systems installed by solar contractors actively participating in the Hawaii Energy solar program.

Combined with a 30 percent federal tax credit and 35 percent state tax credit, the $750 rebate could shave off about 70 percent of the average retail system's cost, the release said.

On the Move

» Hawaii Pacific Entertainment has hired Andrew Sato as vice president. He has more than 13 years of technology, music and entertainment sales experience, including as an account executive for Visionary Related Entertainment as well as working in sales for Game Stop.

» Martin & MacArthur promoted Savina Wendin to vice president in the retail division from director of retail operations. She has more than 30 years of retail experience.