Matson Borrows More

zoom U.S. shipping company Matson Inc. plans to issue USD 75 million of 30-year senior unsecured notes, as well as to increase its existing USD 375 million unsecured revolving credit facility to USD 400 million, extending it for a new five-year term, maturing July 2020. The senior unsecured notes will have a weighted average life of approximately 13 years and will bear interest at a rate of 3.92 percent, payable semi-annually. The notes are expected to be issued in September 2015, subject to satisfying customary closing conditions, and the proceeds are expected to be used for general corporate purposes, which may include paying down the companys revolving credit facility. We are pleased to lock in this attractive long-term fixed rate debt, said Joel Wine, Matsons Senior Vice President and Chief Financial Officer. This financing strengthens Matsons balance sheet and, combined with the significant cash flow generated by our core businesses, provides ample liquidity to execute our new vessel construction program, pay down debt, and return capital to shareholders. The new financing arrangements come shortly after the company agreed to pay USD 15.4 million compensation for the 2013 molasses oil spill in Honolulu Harbor. Matson also recently announced plans to invest USD 30 million to strengthen its operations in Alaska.