Matson to place $75 million 3.92% notes; JP Morgan European issuing €50 million 2.69% notes

By Lisa Kerner

Charlotte, N.C., July 30 – Matson, Inc. announced it agreed to place $75 million of 30-year 3.92% senior notes in September, subject to customary closing conditions.

The notes will have a weighted average life of about 13 years, according to a news release.

Proceeds will be used for general corporate purposes, which may include paying down the company’s revolving credit facility.

The notes will begin to amortize in 2017, with annual principal payments of roughly $1.8 million through 2019. During the years 2020 to 2026, the annual principal payments will range between $1.3 million and roughly $8 million. Starting in 2027, and in each year thereafter, annual principal payments will be about $1.5 million.

Matson is a Honolulu-based operator of ships in the Pacific, including container ships, combination container and roll-on/roll-off ships and custom-designed barges.

JP Morgan European Investment Trust plc will privately place €50 million of 2.69% 20-year notes.

The funding date for the notes is expected to be Aug. 26, a news release stated.

The London-based company expects to use the proceeds to repay the €50 million drawn under its €60 million 364-day credit facility that is due to expire on Aug. 27, according to a news release.

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