Matson to draw from revolver for construction of two new vessels

By Wendy Van Sickle

Columbus, Ohio, Aug. 25 – Matson, Inc. said it plans to use borrowings under its unsecured revolving credit facility to fund the production of two vessels, according to an 8-K filing with the Securities and Exchange Commission.

Subsidiary Matson Navigation Co., Inc. entered into a definitive agreement for National Steel and Shipbuilding Co. to construct the duel-fuel capable combination container and roll-on/roll-off vessels, with delivery expected in late 2019 and mid-2020. The purchase will also be funded by cash flows from operations and additional debt financings, which could include U.S. government guaranteed vessel finance bonds.

Payments will be made over the next four years, with 5% due upon the execution of the ship construction contract, a total of 8.2% due in 2017, a total of 39% due in 2018, a total of 36.4% due in 2019 and the remaining 11.4% due in 2020.

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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