Matson to draw from revolver for acquisition, to repay loans via notes

By Marisa Wong

Morgantown, W.Va., July 18 – Matson, Inc. said it plans to use borrowings under its revolving credit facility to fund its planned acquisition of Span Alaska Transportation, LLC.

Currently, $345 million of the company’s $400 million revolver is unused.

The company also announced that it intends to issue $200 million of 15-year senior notes with a fixed coupon of 3.14%. Proceeds from the private placement of notes are expected to be used to pay down the company’s revolver.

The acquisition, valued at $197.6 million, is expected to close in the third quarter of 2016. The note placement is slated to be completed within the next 60 days.

Matson is a Honolulu-based U.S. carrier in the Pacific Ocean. Span Alaska is a provider of less-than-container loan (LCL) freight consolidation and forwarding services to Alaska.

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