- Jefferies quoted private placement notes at distressed levels
- Some holders have held calls on potential fallout, recovery
Some Wall Street bond brokers are soliciting interest in a series of rarely traded notes tied to Hawaiian Electric Industries, as market participants assess potential liabilities for the utility following deadly wildfires in Maui, according to people with knowledge of the situation.
Jefferies Financial Group sent out quotes this week on Hawaiian Electric Co.’s private placement notes at deeply distressed levels, between 40 cents to 60 cents on the dollar, said the people, who asked not to be named because the matter is private. Meanwhile, traders at Seaport Group are gauging interest from some investors, the people said.
The solicitation is among a number of early indications that both investors and the utility have started to take steps to determine potential losses stemming from the wildfires. The notes quoted by Jefferies are rarely traded, privately-placed securities primarily held by insurance companies, the people said. Several banks are also making markets in the company’s municipal bonds.
Bloomberg Markets
By Rachel Butt and Reshmi Basu
August 17, 2023