HAWAI'IGAS Pursues Natural Gas Strategy For Hawai'i

News Release from Hawai’iGas

O'AHU, Hawaii, Aug. 10, 2012 /PRNewswire/ -- On August 9, 2012, HAWAI'IGAS, Hawai'i's clean gas energy provider, filed an application with the Federal Energy Regulatory Commission (FERC) requesting authority to import Liquefied Natural Gas (LNG) to Hawai'i.

Under the terms of the Natural Gas Act, HAWAI'IGAS seeks to initiate the first of three phases of a program for the use of this clean, cost effective fuel for customers. The gas is being shipped from the Continental United States in conventional insulated intermodal containers and will be used for emergency backup purposes to supplement feedstock supply in the event of damage or disruption in supply from existing sources.

HAWAI'IGAS is pursuing the use of natural gas to diversify its fuel supply and improve energy security. The company manufactures most of Honolulu's gas from naphtha feedstock supplied by the Tesoro Kapolei Refinery adjacent to its Synthetic Natural Gas (SNG) Plant on the island of O'ahu. Performance issues with the Hawai'i-based refineries and announced intention to sell the Tesoro Kapolei Refinery, along with Tesoro's other Hawai'i assets, emphasizes the importance of fuel supply diversification.

Hawai'i does not have any naturally occurring fossil fuel resources and relies on imported petroleum to meet its energy needs. In 2011, the state imported 42 million barrels crude oil and another four million barrels of finished petroleum products, 95 percent of which were from countries other than the United States.

Natural gas is an alternative fuel available today that can be used to diversify Hawai'i's fuel supply and lower the cost of energy. It also supports the state's clean energy goals, which seek to achieve 70 percent clean energy by 2030; 40 percent from locally generated renewable energy and 30 percent from efficiency measures.

"Subject to obtaining approval from the Federal Energy Regulatory Commission, the Hawai'i Public Utilities Commission and other regulatory agencies, The Gas Company intends to start importing LNG later this year," according to Jeff Kissel, Gas Company president and CEO.

About The Gas Company, LLC

The Gas Company, LLC, doing business as HAWAI'IGAS for select products and services, is Hawaii's only government franchised full-service gas company. HAWAI'IGAS manufactures synthetic natural gas (SNG) for most of its utility customers on O'ahu, distributes propane to utility and non-utility customers throughout the state's six primary islands and produces renewable gas products from agricultural feedstocks. (www.hawaiigas.com)

Company

The Gas Company is a wholly owned subsidiary of Macquarie Infrastructure Company (NYSE: MIC). MIC owns, operates and invests in a diversified group of infrastructure businesses that provide basic services to customers across the United States. (www.macquarie.com/mgl/com/mic)

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Macquarie Infrastructure Company LLC Announces Successful Refinancing of The Gas Company

• New debt package lowers interest expense, increases average tenor

NEW YORK--(BUSINESS WIRE August 10, 2012)--Macquarie Infrastructure Company (NYSE: MIC) announced that it has successfully refinanced the debt of its Hawaii-based gas processing and distribution business. The Gas Company used the proceeds to refinance all of its debt and to put in place a facility that will fund future growth initiatives.

“The terms of the new debt facilities and the fact that the offerings were over-subscribed reflect the strong financial performance of The Gas Company to date as well as its prospects”

The Gas Company issued $100.0 million of 10-year, non-amortizing senior secured notes. The notes bear interest at a fixed rate of 4.22%.

The business also obtained an $80.0 million, 5-year, non-amortizing term loan. The interest rate floats at LIBOR + 225 basis points. The floating rate has been fixed for 4 years at an all-in rate of 2.89% using an interest rate hedge (swap).

The proceeds of the senior secured notes and the term loan were used to completely repay $180.0 million of debt comprising two existing 5-year term loans and a revolving credit facility. Those facilities would have matured in June of 2013.

The weighted average cost of debt borne by The Gas Company has been reduced from 4.9% to 3.6%. The lower rates will reduce its cash interest expense by approximately $2.3 million per year or approximately $0.05 per share per year, pre-tax.

“The terms of the new debt facilities and the fact that the offerings were over-subscribed reflect the strong financial performance of The Gas Company to date as well as its prospects,” said James Hooke, Chief Executive Officer of MIC. “The overall increase in the amount of credit available, when approved, is expected to facilitate the further growth of the business including the potential expansion into LNG distribution.”

The Gas Company also obtained commitments to fund an additional $60.0 million in a 5-year revolving credit facility that is expected to be available to fund growth capital expenditures and general corporate needs. That facility is expected to become effective following approval by the Hawaii Public Utilities Commission. Once approved, drawings on the facility will bear interest at LIBOR + 150 basis points.

Wells Fargo served as the lead arranger on the term loan debt and revolving credit facility. Wells Fargo and Macquarie Capital served as joint bookrunners on the senior secured notes.

About Macquarie Infrastructure Company

Macquarie Infrastructure Company owns, operates and invests in a diversified group of infrastructure businesses providing basic, everyday services, to customers in the United States. Its businesses consist of three energy-related businesses including a gas production and distribution business (The Gas Company in Hawaii), a controlling interest in a district energy business (District Energy), and a 50% interest in a bulk liquid storage terminal business (International-Matex Tank Terminals). MIC also owns and operates an aviation-related airport services business (Atlantic Aviation). The Company is managed by a wholly-owned subsidiary of the Macquarie Group. For additional information, please visit the Macquarie Infrastructure Company website at www.macquarie.com/mic. MIC-G

About The Gas Company

The Gas Company, LLC, doing business as HAWAI‘IGAS for select products and services, is Hawaii’s only government franchised full-service gas company. HAWAI‘IGAS manufactures synthetic natural gas (SNG) for most of its utility customers on O‘ahu, distributes propane to utility and non-utility customers throughout the state’s six primary islands and produces renewable gas products from agricultural feedstocks. (www.hawaiigas.com)

Forward-Looking Statements

This filing contains forward-looking statements. MIC may, in some cases, use words such as "project”, "believe”, "anticipate”, "plan”, "expect”, "estimate”, "intend”, "should”, "would”, "could”, "potentially”, or "may” or other words that convey uncertainty of future events or outcomes to identify these forward-looking statements. Forward-looking statements in this release are subject to a number of risks and uncertainties, some of which are beyond MIC’s control including, among other things: changes in general economic or business conditions; its ability to service, comply with the terms of and refinance debt, successfully integrate and manage acquired businesses, retain or replace qualified employees, manage growth, make and finance future acquisitions, and implement its strategy; its shared decision-making with co-investors over investments including the distribution of dividends; its regulatory environment establishing rate structures and monitoring quality of service, demographic trends, the political environment, the economy, tourism, construction and transportation costs, air travel, environmental costs and risks, fuel and gas costs; its ability to recover increases in costs from customers, reliance on sole or limited source suppliers, risks or conflicts of interests involving its relationship with the Macquarie Group and changes in U.S. federal tax law.

MIC’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which MIC is not currently aware could also cause its actual results to differ. In light of these risks, uncertainties and assumptions, you should not place undue reliance on any forward-looking statements. The forward-looking events discussed in this release may not occur. These forward-looking statements are made as of the date of this release. MIC undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MIC is not an authorized deposit-taking institution for the purposes of the Banking Act 1959 (Commonwealth of Australia). The obligations of MIC do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL). MBL does not guarantee or otherwise provide assurance in respect of the obligations of MIC.