MATSON,INC. (NYSE:MATX) Files An 8-K Regulation FD DisclosureItem 7.01.Regulation FD Disclosure.
On November 26, 2018, a subsidiary of Matson, Inc. (“Matson” or the “Company”) entered into an agreement whereby the MV Maunalei was sold for $106.0 million, and subsequently leased back from the buyer under an operating lease agreement.The term of the lease is five years with an option to extend the term for an additional two years.The net proceeds from the sale were used to reduce borrowings under the Company’s revolving credit facility.
As a result of the transaction, the Company expects the following financial effects on an annual basis:$12.0 million in higher operating cost as a result of the new lease expense, offset by approximately $8.8 million in lower costs as a result of a $4.8 million reduction in depreciation and amortization (including dry-dock amortization) and $4.0 million in interest savings based on the current interest rate on the Company’s revolving credit facility.
The Company believes the transaction will provide additional financial flexibility for Matson during the remainder of the new vessel build program and lower financing costs resulting from increasing leverage.
Statements in this Form 8-K that are not historical facts are “forward-looking statements,” within the meaning of the Private Securities Litigation Reform Act of 1995, that involve a number of risks and uncertainties that could cause actual results to differ materially from those contemplated by the relevant forward-looking statement.Factors that could cause actual results to differ materially from those contemplated in the statements include, without limitation, those described on pages 13-21 of the Form 10-K filed by Matson on February 23, 2018 and on page 23 of the Form 10-Q filed by Matson on November6, 2018.These forward-looking statements are not guarantees of future performance.Actual results could differ materially from those anticipated in the forward-looking statements and future results could differ materially from historical performance.
