SEPTEMBER 15, 2016 — Jones Act operator Matson, Inc. (NYSE: MATX) yesterday reported the issuance of $200 million in privately placed 15-year final maturity senior unsecured notes. The 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.
Joel Wine, Matson's Senior Vice President and Chief Financial Officer commented, "We are pleased to complete this attractive fixed rate financing that will pay down our revolving credit facility and strengthen our balance sheet as we progress with our four vessel Hawaii fleet renewal program. We expect to fund the construction of these vessels primarily through the strong cash flows generated by our core businesses, available capacity under our $400 million revolving credit facility, and additional debt financings, which could include Title XI U.S. Government guaranteed vessel finance bonds."
Matson has two 850-foot long, 3,600 TEU "Aloha Class" containerships under construction at Philly Shipyard and last month ordered two 870-foot-long, 3,500 TEU, LNG-ready,"Kanaloa Class ConRo ships at shipbuilder General Dynamics NASSCO,.