<PAGE>
================================================================================
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1997
HAWAIIAN ELECTRIC INDUSTRIES CAPITAL TRUST I
(Exact Name of Registrant as Specified in Its Certificate of Trust)
Commission File Number: 1-8503-01
<TABLE>
<CAPTION>
<S> <C>
Delaware 52-6829385
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
c/o The Bank of New York, 101 Barclay Street, 21st Floor, New York, N.Y.
10286, (212) 815-5084
Attention: Corporate Trust Trustee Administration
(Address, including zip code, and telephone number, including area code, of
principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
- ------------------------------------- -----------------------------------------
8.36% Trust Originated Preferred New York Stock Exchange
Securities (TOPrS)
(and the related guarantee)
Securities registered pursuant to Section 12(g) of the Act: None
</TABLE>
HEI PREFERRED FUNDING, LP
(Exact Name of Registrant as Specified in Its Certificate of Limited
Partnership)
Commission File Number: 1-8503-02
<TABLE>
<CAPTION>
<S> <C>
Delaware 52-2007237
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
300 Delaware Avenue, Suite 1704, Wilmington, Delaware 19801, (302) 427-5738
(Address, including zip code, and telephone number, including area code, of
principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which registered
- ------------------------------------- -----------------------------------------
8.36% Partnership Preferred None
Securities
(and the related guarantee)
Securities registered pursuant to Section 12(g) of the Act: None
</TABLE>
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes x No
----- -----
As of September 30, 1997, no voting securities of the Registrants were held by
non-affiliates of the Registrants.
===============================================================================
<PAGE>
Hawaiian Electric Industries Capital Trust I
HEI Preferred Funding, LP
Form 10-Q--Quarter ended September 30, 1997
INDEX
PAGE NO.
PART I. FINANCIAL INFORMATION
Item 1. Financial statements
Hawaiian Electric Industries Capital Trust I
--------------------------------------------
<TABLE>
<S> <C>
Balance sheet (unaudited) - September 30, 1997....................1
Statements of earnings (unaudited) - for the three months
ended September 30, 1997 and the period February 4, 1997
(inception) to September 30, 1997................................1
Statements of changes in stockholders' equity (unaudited) -
for the three months ended September 30, 1997 and the period
February 4, 1997 (inception) to September 30, 1997...............2
Statement of cash flows (unaudited) -
for the period February 4, 1997 (inception) to September 30,
1997.............................................................2
Notes to financial statements (unaudited).........................3
HEI Preferred Funding, LP
-------------------------
Balance sheet (unaudited) - September 30, 1997....................4
Statements of earnings (unaudited) - for the three months
ended September 30, 1997 and the period February 4, 1997
(inception) to September 30, 1997................................4
Statements of changes in partners' capital (unaudited) -
for the three months ended September 30, 1997 and the period
February 4, 1997 (inception) to September 30, 1997...............5
Statement of cash flows (unaudited) - for the period
February 4, 1997 (inception) to September 30, 1997...............5
Notes to financial statements (unaudited).........................6
Item 2. Management's discussion and analysis of financial condition
and results of operations........................................6
<CAPTION>
PART II. OTHER INFORMATION
<S> <C> <C>
Item 1. Legal proceedings.................................................7
Item 2. Changes in securities.............................................7
Item 3. Defaults upon senior securities...................................7
Item 4. Submission of matters to a vote of security holders...............7
Item 5. Other information.................................................7
Item 6. Exhibits and reports on Form 8-K..................................7
Signatures................................................................9
</TABLE>
i
<PAGE>
<TABLE>
<CAPTION>
PART I - FINANCIAL INFORMATION
- --------------------------------------------------------------------------------
ITEM 1. FINANCIAL STATEMENTS
- -----------------------------
Hawaiian Electric Industries Capital Trust I
BALANCE SHEET (UNAUDITED)
September 30,
(in thousands) 1997
- --------------------------------------------------------
Assets
- ------
<S> <C>
Investment in partnership
preferred securities....................... $103,093
========
Stockholders' equity
- --------------------
Preferred securities (8.36% Trust Originated
Preferred Securities; 4,000,000 authorized,
issued and outstanding; $25 liquidation
amount per security)....................... $100,000
Common securities (8.36% Trust Common
Securities; 123,720 authorized, issued
and outstanding; $25 liquidation amount
per security)............................ 3,093
--------
$103,093
========
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
Hawaiian Electric Industries Capital Trust I
STATEMENTS OF EARNINGS (UNAUDITED)
Three months February 4, 1997
ended (inception) to
September 30, September 30,
(in thousands) 1997 1997
---------------------------------------------------------------------------------
<S> <C> <C>
Earnings
Income on partnership
preferred securities....... $2,155 $5,626
============================ =======================
</TABLE>
Note: Hawaiian Electric Industries, Inc. owns all of Hawaiian Electric
Industries Capital Trust I's common securities. Therefore, per share
data is not meaningful.
See accompanying notes to financial statements.
1
<PAGE>
<TABLE>
<CAPTION>
Hawaiian Electric Industries Capital Trust I
STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (UNAUDITED)
Three months February 4, 1997
ended (inception) to
September 30, September 30,
(in thousands) 1997 1997
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
Preferred securities, beginning of period.................................. $100,000 $ -
Issuance of preferred securities on
February 4, 1997 (inception)........................................... -- 100,000
------------ ------------
Balance, end of period................................................... 100,000 100,000
------------ ------------
Common securities, beginning of period..................................... 3,093 --
Issuance of common securities on
February 4, 1997 (inception)........................................... -- 3,093
------------ ------------
Balance, end of period................................................... 3,093 3,093
------------- ------------
Retained earnings, beginning of period..................................... -- --
Earnings................................................................. 2,155 5,626
Distribution on common securities........................................ (65) (169)
Distribution on preferred securities..................................... (2,090) (5,457)
------------ ------------
Balance, end of period................................................... -- --
------------ ------------
Total stockholders' equity................................................. $ 103,093 $103,093
============ ============
See accompanying notes to financial statements.
Hawaiian Electric Industries Capital Trust I
STATEMENT OF CASH FLOWS (UNAUDITED)
February 4, 1997
(inception) to
September 30, 1997
(in thousands) 1997
- ------------------------------------------------------------------------------------------------------------------------------------
Cash flows from operating activities
Earnings..................................................................................................... $ 5,626
------------
Net cash provided by operating activities.................................................................... 5,626
------------
Cash flows from investing activities
Purchase of partnership preferred securities on February 4, 1997 (inception)................................. (103,093)
------------
Net cash used in investing activities........................................................................ (103,093)
------------
Cash flows from financing activities
Proceeds from issuance of preferred securities on February 4, 1997 (inception)............................... 100,000
Proceeds from issuance of common securities on February 4, 1997 (inception).................................. 3,093
Distribution on common securities............................................................................ (169)
Distribution on preferred securities......................................................................... (5,457)
------------
Net cash provided by financing activities.................................................................... 97,467
------------
Net increase in cash and equivalents......................................................................... --
Cash and equivalents, beginning of period.................................................................... --
------------
Cash and equivalents, end of period.......................................................................... $ --
============
</TABLE>
See accompanying notes to financial statements.
2
<PAGE>
Hawaiian Electric Industries Capital Trust I
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(Unaudited)
- --------------------------------------------------------------------------------
(1) BASIS OF PRESENTATION
- --------------------------
The accompanying unaudited financial statements have been prepared in conformity
with generally accepted accounting principles (GAAP) for interim financial
information and with the instructions to Securities and Exchange Commission
(SEC) Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not
include all of the information and footnotes required by GAAP for complete
financial statements. The accompanying unaudited financial statements should be
read in conjunction with the financial statements and notes thereto in Hawaiian
Electric Industries Capital Trust I's Quarterly Reports on SEC Form 10-Q for the
period February 4, 1997 (inception) to March 31, 1997 and quarter ended
June 30,1997. In preparing the Trust's financial statements, management is
required to make estimates and assumptions that affect the reported amounts of
assets and liabilities and disclosure of contingent assets and liabilities at
the date of the balance sheet and the reported amounts of earnings for the
period. Actual results could differ significantly from those estimates.
In the opinion of the management of Hawaiian Electric Industries Capital Trust I
(the Trust), the accompanying unaudited financial statements contain all
material adjustments required by GAAP to present fairly the Trust's financial
position as of September 30, 1997, the results of its operations for the three
months ended September 30, 1997 and for the period February 4, 1997 (inception)
to September 30, 1997 and its cash flows for the period February 4, 1997
(inception) to September 30, 1997. All such adjustments are of a normal
recurring nature, unless otherwise disclosed in this Form 10-Q or other
referenced material. The Trust was formed under Delaware law on December 19,
1996, but engaged in no activity until it was capitalized through the issuance
of the Trust Preferred Securities and Trust Common Securities on February 4,
1997 (inception) with the proceeds from the sale of the Trust Preferred
Securities and the Common Securities. Accordingly, only the current period's
results, commencing February 4, 1997 (inception) are presented.
3
<PAGE>
<TABLE>
<CAPTION>
HEI Preferred Funding, LP
BALANCE SHEET (UNAUDITED)
September 30,
(in thousands) 1997
- -------------------------------------------------------------------------------
Assets
- ------
<S> <C>
Cash and equivalents......................... $ 1
Interest receivable.......................... 43
Investments
Corporate commercial paper................ 1,213
Affiliate debentures...................... 120,073
------------------------------
$ 121,330
==============================
Liabilities and Partners' capital
- ---------------------------------
Liabilities
Accounts payable to affiliate............. $ 44
Partners' capital
Limited partner interest.................. 103,093
General partner interest.................. 18,193
------------------------------
Total partners' capital................... 121,286
------------------------------
$ 121,330
==============================
</TABLE>
See accompanying notes to financial statements.
<TABLE>
<CAPTION>
HEI Preferred Funding, LP
STATEMENTS OF EARNINGS (UNAUDITED)
February 4,
Three months 1997
ended (inception) to
September 30, September 30,
(in thousands) 1997 1997
- --------------------------------------------------------------------------------
<S> <C> <C>
Earnings
Interest income
Affiliate debentures.......... $2,509 $6,552
Corporate commercial paper.... 17 44
--------------------- --------------------
$2,526 $6,596
===================== ===================
Note: Hycap Management, Inc., a wholly owned subsidiary of Hawaiian Electric
Industries, Inc., is the sole general partner of HEI Preferred Funding,
LP. Per share data is not meaningful for HEI Preferred Funding, LP.
</TABLE>
See accompanying notes to financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
HEI Preferred Funding, LP
STATEMENTS OF CHANGES IN PARTNERS' CAPITAL (UNAUDITED)
Three months February 4, 1997
ended (inception) to
September 30, September 30,
(in thousands) 1997 1997
- -----------------------------------------------------------------------------------------
<S> <C> <C>
Limited partner's capital, beginning of period. $ 103,093 $ --
Issuance of preferred securities on
February 4, 1997 (inception)................. -- 103,093
Earnings allocated to limited partner......... 2,155 5,626
Distribution to limited partner............... (2,155) (5,626)
---------- ----------
Balance, end of period........................ 103,093 103,093
---------- ----------
General partner's capital, beginning of period... 18,193 --
Capital contribution.......................... -- 18,193
Earnings allocated to general partner......... 371 970
Distribution to general partner............... (371) (970)
----------- ----------
Balance, end of period........................ 18,193 18,193
---------- ----------
Total partners' capital.......................... $ 121,286 $ 121,286
========== ==========
See accompanying notes to financial statements.
HEI Preferred Funding, LP
STATEMENT OF CASH FLOWS (UNAUDITED)
February 4, 1997
(inception) to
September 30,
(in thousands) 1997
- --------------------------------------------------------------------------------
Cash flows from operating activities
Earnings.................................................. $ 6,596
Increase in interest receivable.......................... (43)
Increase in accounts payable to affiliate................. 44
-----------------
Net cash provided by operating activities................. 6,597
-----------------
Cash flows from investing activities
Purchase of affiliate debentures.......................... (120,073)
Purchase of commercial paper.............................. (1,213)
-----------------
Net cash used in investing activities..................... (121,286)
-----------------
Cash flows from financing activities
Proceeds from issuance of preferred securities............. 103,093
Capital contribution - general partner..................... 18,193
Distribution to limited partner............................ (5,626)
Distribution to general partner............................ (970)
-----------------
Net cash provided by financing activities.................. 114,690
-----------------
Net increase in cash and equivalents....................... 1
Cash and equivalents, beginning of period.................. --
-----------------
Cash and equivalents, end of period........................ $ 1
=================
</TABLE>
See accompanying notes to financial statements.
5
<PAGE>
HEI Preferred Funding, LP
NOTES TO FINANCIAL STATEMENTS
September 30, 1997
(Unaudited)
- -------------------------------------------------------------------------------
(1) BASIS OF PRESENTATION
- --------------------------
The accompanying unaudited financial statements have been prepared in conformity
with GAAP for interim financial information and with the instructions to SEC
Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all
of the information and footnotes required by GAAP for complete financial
statements. The accompanying unaudited financial statements should be read in
conjunction with the financial statements and notes thereto in HEI Preferred
Funding, LP's Quarterly Reports on SEC Form 10-Q for the period February 4, 1997
(inception) to March 31, 1997 and quarter ended June 30, 1997. In preparing the
Partnership's financial statements, management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the balance sheet
and the reported amounts of earnings for the period. Actual results could differ
significantly from those estimates.
In the opinion of the management of HEI Preferred Funding, LP (the Partnership),
the accompanying unaudited financial statements contain all material adjustments
required by GAAP to present fairly the Partnership's financial position as of
September 30, 1997, the results of its operations for the three months ended
September 30, 1997 and for the period February 4, 1997 (inception) to September
30, 1997 and its cash flows for the period February 4, 1997 (inception) to
September 30, 1997. All such adjustments are of a normal recurring nature,
unless otherwise disclosed in this Form 10-Q or other referenced material. The
Partnership was formed on December 23, 1996, but engaged in no activity until it
was capitalized through the issuance of its Partnership Preferred Securities and
general partner interest on February 4, 1997 (inception) with the proceeds from
the sale of the Partnership Preferred Securities and the general partner
interest. Accordingly, only the current period's results, commencing February 4,
1997 (inception) are presented.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
- --------------------------------------------------------------------------------
OF OPERATIONS
- -------------
Hawaiian Electric Industries Capital Trust I (the Trust) is a statutory business
trust formed under the Delaware Business Trust Act, as amended, pursuant to a
trust agreement and a certificate of trust filed with the Secretary of State on
December 19, 1996. The Trust Agreement was subsequently amended by an amended
and restated trust agreement dated as of February 1, 1997. The Trust exists for
the exclusive purposes of (i) issuing trust securities, consisting of 8.36%
Trust Originated Preferred Securities (the Trust Preferred Securities) and trust
common securities (the Trust Common Securities), representing undivided
beneficial ownership interests in the assets of the Trust, (ii) investing the
gross proceeds of the trust securities in 8.36% Partnership Preferred Securities
(the Partnership Preferred Securities) issued by HEI Preferred Funding, LP (the
Partnership), and (iii) engaging in only those other activities necessary or
incidental thereto.
The Partnership is a limited partnership formed under the Delaware Revised
Uniform Limited Partnership Act, as amended, pursuant to an agreement of limited
partnership and filing of a certificate of limited partnership with the
Secretary of State on December 23, 1996, which was subsequently amended by an
amended and restated agreement of limited partnership dated as of February 1,
1997. Hycap Management, Inc. (Hycap), a wholly owned subsidiary of Hawaiian
Electric Industries, Inc. (the Company), is the sole general partner of the
Partnership. The Partnership is managed by the general partner and exists for
the exclusive purposes of (a) purchasing certain eligible debt instruments of
the Company and the wholly owned subsidiaries of the Company (collectively, the
Affiliate Investment Instruments) and certain U.S. government obligations and
commercial paper of unaffiliated entities (Eligible Debt Securities) with the
proceeds from (i) the sale of its Partnership Preferred Securities, representing
a limited partner interest in the Partnership, to the Trust and (ii) a capital
contribution in exchange for the general partner interest in the Partnership,
(b) receiving interest and other payments on the Affiliate Investment
Instruments and the Eligible Debt Securities held by the Partnership from time
to time, (c) making distributions on the Partnership Preferred Securities and
distributions on the general partner interest in the Partnership if, as and when
declared by the general partner in its sole discretion, (d) subject to the
restrictions and conditions contained in the Agreement of Limited Partnership,
making
6
<PAGE>
additional investments in Affiliate Investment Instruments and Eligible
Debt Securities and disposing of any such investments, and (e) except as
otherwise limited in the Agreement of Limited Partnership, entering into, making
and performing all contracts and other undertakings, and engaging in those
activities and transactions as the general partner deems necessary or advisable
for carrying out the purposes of the Partnership.
The Registrant's activities are limited to issuing securities and investing the
proceeds as described above. Since the Trust was organized on December 19, 1996,
its activities, as specified in its declaration of trust, have been limited to
the issuance of the Trust Preferred Securities and the Trust Common Securities,
the investing of the proceeds in the Partnership Preferred Securities, and the
payment of distributions on the Trust Preferred Securities and the Trust Common
Securities in accordance with their terms. Since the Partnership was organized
on December 23, 1996, its activities, as specified in its agreement of limited
partnership, have been limited to the issuance of the Partnership Preferred
Securities, the receipt of a capital contribution from Hycap, as general
partner, the investment of the proceeds from the sale of the Partnership
Preferred Securities and the General Partner interest in the Affiliate
Investment Instruments and certain eligible debt securities, and the payment of
distributions on the Partnership Preferred Securities. All of the foregoing
activities of the Trust and the Partnership occurred in or after February 1997.
PART II - OTHER INFORMATION
- --------------------------------------------------------------------------------
ITEM 1. LEGAL PROCEEDINGS
- --------------------------
The Registrants know of no material legal proceedings involving the Trust, the
Partnership or the assets of either of them.
ITEM 2. CHANGES IN SECURITIES
- ------------------------------
Not applicable.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
- ----------------------------------------
Not applicable.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
- ------------------------------------------------------------
Not applicable.
ITEM 5. OTHER INFORMATION
- -----------------------------
Not applicable.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
- -----------------------------------------
(A) EXHIBITS
Exhibit 4.1 Certificate of Trust dated as of December 19,
1996 (incorporated by reference to Exhibit
4(a)(i) to Registration Statement on Form S-3
(No. 333-18809) (the "Registration Statement"))
Exhibit 4.2 Amended and Restated Trust Agreement of the
Trust dated as of February 1, 1997 (incorporated
by reference to Exhibit 4(f) to the Current
Report on Form 8-K of Hawaiian Electric
Industries, Inc. dated February 4, 1997, File
No. 1-8503 (the "February 4, 1997 Form 8-K"))
Exhibit 4.3 Amended and Restated Certificate of Limited
Partnership of the Partnership dated as of
December 23, 1996 (incorporated by reference to
Exhibit 4(c) to the Registration Statement)
7
<PAGE>
(A) EXHIBITS (CONTINUED)
Exhibit 4.4 Amended and Restated Agreement of Limited
Partnership of the Partnership dated as of
February 1, 1997 (incorporated by reference
to Exhibit 4(e) to the February 4, 1997 Form
8-K)
Exhibit 4.5 Trust Preferred Securities Guarantee Agreement
with respect to the Trust dated as of
February 1, 1997 (incorporated by reference
to Exhibit 4(o) to the February 4, 1997 Form
8-K)
Exhibit 4.6 Partnership Guarantee Agreement with respect
to the Partnership dated as of February 1,
1997 (incorporated by reference to Exhibit
4(p) to the February 4, 1997 Form 8-K)
Exhibit 4.7 Junior Indenture between HEI and The Bank of
New York, as Trustee, dated as of February 1,
1997 (incorporated by reference to Exhibit
4(i) to the February 4, 1997 Form 8-K)
Exhibit 4.8 Officers' Certificate in connection with
issuance of 8.36% Junior Subordinated
Debenture, Series A, Due 2017 under Junior
Indenture of HEI (incorporated by reference to
Exhibit 4(l) to the February 4, 1997 Form 8-K)
Exhibit 4.9 Affiliate Investment Instruments Guarantee
Agreement with respect to 8.36% Junior
Subordinated Debenture of HEIDI dated as of
February 1, 1997 (incorporated by reference
to Exhibit 4(q) to the February 4, 1997 Form
8-K)
Exhibit 4.10 8.36% Trust Originated Preferred Security
(Liquidation Amount $25 Per Trust Preferred
Security) of the Trust (incorporated by
reference to Exhibit 4(m) to the February 4,
1997 Form 8-K)
Exhibit 4.11 8.36% Junior Subordinated Debenture Series A,
Due 2017, of HEI (incorporated by reference
to Exhibit 4(n) to the February 4, 1997 Form
8-K)
Exhibit 4.12 Certificate Evidencing Trust Common Securities
of the Trust dated February 4, 1997
(incorporated by reference to Exhibit 4.12 to
the Quarterly Report on Form 10-Q of Hawaiian
Electric Industries Capital Trust I, File No.
1-8503-01, and HEI Preferred Funding, LP, File
No. 1-8503-02, for the quarter ended March 31,
1997)
Exhibit 4.13 Certificate Evidencing Partnership Preferred
Securities of the Partnership dated
February 4, 1997 (incorporated by reference to
Exhibit 4.13 to the Quarterly Report on Form
10-Q of Hawaiian Electric Industries Capital
Trust I, File No. 1-8503-01, and HEI Preferred
Funding, LP, File No. 1-8503-02, for the
quarter ended March 31, 1997)
Exhibit 12 Computation of ratios of earnings to combined
fixed charges and preferred securities
distributions, for the period February 4, 1997
(inception) to September 30, 1997
8
<PAGE>
(A) EXHIBITS (CONTINUED)
Exhibit 27.1 Hawaiian Electric Industries Capital Trust I
-- Financial Data Schedule
September 30, 1997 and for the period February
4, 1997 (inception) to September 30, 1997
Exhibit 27.2 HEI Preferred Funding, LP -- Financial Data
Schedule
September 30, 1997 and for the period
February 4, 1997 (inception) to September 30,
1997
(B) REPORTS ON FORM 8-K
None
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrants have duly caused this report to be signed on their
behalf by the undersigned, thereunto duly authorized on the 10th day of
November, 1997.
HAWAIIAN ELECTRIC INDUSTRIES
CAPITAL TRUST I
By: /s/Robert F. Mougeot
--------------------
Name: Robert F. Mougeot
Title: Regular Trustee (Principal
Financial Officer of the Trust)
By: /s/Constance H. Lau
-------------------
Name: Constance H. Lau
Title: Regular Trustee
HEI PREFERRED FUNDING, LP
By: HYCAP MANAGEMENT, INC., as General
Partner
By: /s/Robert F. Mougeot
--------------------
Name: Robert F. Mougeot
Title: Vice President
(Principal Financial Officer of
the Partnership)
9
<PAGE>
Exhibit 12
----------
Hawaiian Electric Industries Capital Trust I
HEI Preferred Funding, LP
COMPUTATION OF RATIO OF EARNINGS TO COMBINED FIXED CHARGES AND PREFERRED
SECURITIES DISTRIBUTIONS
(unaudited)
<TABLE>
<CAPTION>
For the period February 4, 1997 (inception)
to September 30, 1997
---------------------------------------------------------------
Hawaiian Electric
Industries Capital HEI Preferred
(dollars in thousands) Trust I Funding, LP
----------------------------------------------------------------------------------------------------------
<S> <C> <C>
Earnings................................ $5,626 $6,596
======================== ==================================
Fixed charges........................... $ -- $ --
Preferred securities distribution
requirements........................... 5,457 5,626
------------------------ ----------------------------------
TOTAL COMBINED FIXED CHARGES AND
PREFERRED SECURITIES DISTRIBUTIONS.. $5,457 $5,626
======================== ==================================
RATIO OF EARNINGS TO COMBINED FIXED
CHARGES AND PREFERRED SECURITIES
DISTRIBUTIONS...................... 1.03 1.17
======================== ==================================
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0001029528
<NAME> HAWAIIAN ELECTRIC INDUSTRIES CAPITAL TRUST I
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> FEB-04-1997
<PERIOD-END> SEP-30-1997
<CASH> 0
<SECURITIES> 103,093
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 0
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 103,093
<CURRENT-LIABILITIES> 0
<BONDS> 0
0
100,000
<COMMON> 3,093
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 103,093
<SALES> 0
<TOTAL-REVENUES> 5,626
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 5,626
<INCOME-TAX> 0
<INCOME-CONTINUING> 5,626
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,626
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<CIK> 0001029534
<NAME> HEI PREFERRED FUNDING, LP
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> FEB-04-1997
<PERIOD-END> SEP-30-1997
<CASH> 1
<SECURITIES> 121,286
<RECEIVABLES> 43
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 1,257
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 121,330
<CURRENT-LIABILITIES> 44
<BONDS> 0
0
103,093
<COMMON> 18,193
<OTHER-SE> 0
<TOTAL-LIABILITY-AND-EQUITY> 121,330
<SALES> 0
<TOTAL-REVENUES> 6,596
<CGS> 0
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 6,596
<INCOME-TAX> 0
<INCOME-CONTINUING> 6,596
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 6,596
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
