US carrier Matson rounded off an interesting few days by announcing on Friday plans for increased borrowing.
The borrowing will come partly from an issue of $75 million of 30-year senior unsecured notes. And it will also increase its existing $375 million unsecured revolving credit facility to $400 million, extending it for a new five-year term, maturing July 2020.
The senior unsecured notes are expected to be issued in September this year and to have a weighted average life of approximately 13 years. They will bear interest at a rate of 3.92 percent, payable semi-annually.
Proceeds are expected to be used for general corporate purposes which could include paying down the company’s revolving credit facility, funding its new vessel construction program and returning capital to shareholders.
It has been a busy week for Matson. On Wednesday it announced plans to spend $30m on upgrading the Alaska services it acquired in May from Horizon Lines.
And on Thursday it agreed to pay $15m for a 2013 molasses spill in Honolulu.