Business Context and Reporting Period
This Form 8-K was filed by Alexander & Baldwin, Inc. on December 11, 2008. The report details the acquisition of a four-building industrial property known as the Midstate 99 Warehouse Portfolio in Visalia, California. Note: The request metadata referenced "Matson, Inc.", but the filing text explicitly identifies the registrant as Alexander & Baldwin, Inc.
Key Financial Metrics and Obligations
The transaction involved the assumption of approximately $12.5 million in debt under two promissory notes:
- Note 1: Principal amount of $8.7 million; interest rate of 6.38%; matures August 1, 2017.
- Note 2: Remaining principal balance of $3.8 million (original $4.2 million); interest rate of 5.88%; matures April 1, 2014.
The filing does not provide data on revenue, profit, cash flow, margins, or overall liquidity for the company.
Material Changes
The primary material change is the creation of a direct financial obligation totaling approximately $12.5 million associated with the purchase of the Midstate 99 Warehouse Portfolio. This represents a new liability on the company's balance sheet.
Debt Structure and Payment Terms
The assumed debt carries specific payment schedules and balloon payments:
- Note 1 Payments: Interest-only payments of approximately $47,000 per month through August 1, 2012. Thereafter, principal and interest payments of approximately $54,000 per month are required through July 2017. A final balloon payment of approximately $8.2 million is due at maturity.
- Note 2 Payments: Principal and interest payments of approximately $26,000 per month through March 2014. A balloon payment of approximately $3.2 million is due at maturity.
Investor Verification Checklist
- Verify the total cash consideration paid for the Midstate 99 Warehouse Portfolio, as the filing only discloses the assumed debt.
- Confirm the current occupancy rates and lease terms for the four buildings in the Visalia portfolio.
- Review the company's overall liquidity position to assess the ability to service the new monthly debt obligations and future balloon payments.
- Check for any subsequent filings regarding the refinancing of the balloon payments due in 2014 and 2017.