US liner carrier Matson has collected 75 m[ds_preview]ill. $ with a private bond placement.
The Honolulu-based and New York-listed company announced the the issuance of privately placed 11-year final maturity senior unsecured notes. According to the company, the Notes will have a weighted average life of approximately 8 years and will bear interest at a rate of 3.37 %, payable semi-annually. Matson intends to use the money »to pay down the company‘s revolving credit facility and for general corporate purposes«.
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.« In August the LNG-ready newbuilding prgramm was made public with 3,500 TEU vessels of the Kanaloa ConRo Class to be built at NASSCO for 511 mill. $.
Matson expects 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«, Wine added.
Founded in 1882, Matson claims itself a leading U.S. carrier in the Pacific with connections to the economies of Hawaii, Alaska, Guam, Micronesia and select South Pacific islands as well as a service from China to Southern California. The fleet of 22 owned vessels includes containerships, combination container and roll-on/roll-off ships and barges.
NASSCO is a subsidiary of General Dynamics and will build the ships with deliveries scheduled for the end of 2019 and mid-year 2020. They will be able to run on either conventional fuels or LNG. The first vessel will be named »Lurline«, the sixth Matson vessel to carry that name, while the second vessel will be its fifth named »Matsonia«.
