Matson on Wednesday announced plans to raise $100m from the private placement of 30-year senior unsecured notes with an average life of approximately 14.5 years that will bear an interest rate of 4.35%, payable semi-annually.
In a statement the US containership operator said proceeds from the bonds, which will likely be issued in January of next year, are expected to be used for “general corporate purposes”.
"We are pleased to lock in this attractive long-term fixed rate debt," added Joel Wine, the New York-listed shipowner’s finance chief, in a release that followed the filing of its third-quarter earnings report.
"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."
Matson said the notes will begin to amortize in 2021 with annual principal payments of $5 to $10m million until 2028. In 2029, and each year thereafter, the company indicated annual principal payments will fall to $2m.
News of the bond offering follows an announcement in which it outlined an order for two 3,600-teu containerships that are due for delivery in 2018 and will carry a price tag of approximately $209m a piece.
