Matson to draw from revolver to fund acquisition of Horizon Lines

By Jennifer Chiou

New York, Nov. 12 – Matson, Inc. announced that it plans to fund its acquisition of Horizon Lines, Inc. with cash on hand and available borrowings under its revolving credit facility.

The company said that it entered into a definitive merger agreement under which Matson will acquire the stock of Horizon, which will include its Alaska operations and the assumption of all non-Hawaii business liabilities.

According to a news release, the transaction is expected to close in 2015 after the completion of Horizon’s sale of its Hawaii operations to the Pasha Group for $141.5 million, shareholder approval and other customary closing conditions.

Under the terms of the merger, Matson will acquire Horizon for $0.72 per fully diluted common share, or $69.2 million, plus the repayment of debt outstanding at closing. The total value for the transaction is $456.1 million before transaction costs.

“The acquisition of Horizon’s Alaska operations is a rare opportunity to substantially grow our Jones Act business,” Matson president and chief executive officer Matt Cox said in the release.

Matson is a Honolulu-based ocean transportation and logistics company.

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