US container line Matson has entered into a sale and leaseback agreement for its 2006-built 2,890 teu containership Maunalei.
Under the agreement, the vessel was sold to an undisclosed buyer for $106m and leased back from the buyer for five years with an option to extend the term for an additional two years.
The company has used the net proceeds from the sale to reduce borrowings under its revolving credit facility.
Matson believes the transaction will provide additional financial flexibility for the company during the remainder of the new vessel build program and lower financing costs resulting from increasing leverage.
Matson currently operates a fleet of 18 vessels with average age of 24 years. It has three newbuildings, one panamax containership and two roro ships, under construction at US yards.