Marine Link
Tuesday, October 25, 2016

Matson Enters Private Placement Agreement

November 6, 2013

Matson, Inc., a U.S. carrier in the Pacific, announced that it has entered into a private placement agreement pursuant to which Matson will issue $100 million of 30-year senior unsecured notes. The notes will have a weighted average life of approximately 14.5 years and will bear an interest rate of 4.35 percent, payable semiannually.

The notes are expected to be issued in January 2014, subject to satisfying customary closing conditions, and the proceeds are expected to be used for general corporate purposes. The notes have financial covenants that are substantially the same as the Company's existing outstanding senior unsecured notes. The notes will begin to amortize in 2021, with annual principal payments of $5-$10 million until 2028. Starting in 2029, and in each year thereafter, the annual principal payments will be $2 million.

"We are pleased to lock in this attractive long-term fixed rate debt," said Joel Wine, Matson's Senior Vice President and Chief Financial Officer. "This financing improves Matson's balance sheet liquidity, and positions us well to fund our fleet renewal plans while also allowing the Company to maintain financial flexibility to pursue new growth investment opportunities."

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