Matson Closes USD 200 Mn Debt Placement

zoomArtist rendering of Matson Kanaloa Class vessel; Image Courtesy: GD NASSCO US-based container carrier Matson said it finalized a USD 200 million private debt sale, proceeds from which would be aimed at paying down the companys revolving credit facility. Proceeds from the debt placement are also expected to be used for general corporate purposes, according to Matson. The 15-year final maturity senior unsecured notes will have a weighted average life of approximately 8.5 years and will bear interest at a rate of 3.14 percent, payable semi-annually. The fixed rate financing is set to strengthen our balance sheet as we progress with our four vessel Hawaii fleet renewal program, Joel Wine, Matsons Senior Vice President and Chief Financial Officer, said. He added that Matson expects to fund the construction of these vessels primarily through the strong cash flows generated by our core businesses, available capacity under our USD 400 million revolving credit facility, and additional debt financings, which could include Title XI U.S. Government guaranteed vessel finance bonds.