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Matson to acquire Span Alaska in $197.6m deal

Staff Writer |
Matson said that its subsidiary Matson Logistics and Span Alaska have entered into a definitive agreement for Matson Logistics to buy 100% of the equity of Span Alaska Transportation for $197.6 million in cash.

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The transaction is expected to be treated as an asset purchase agreement for federal tax purposes which will allow for a step-up in tax basis of the assets producing an anticipated approximate $35 million net present value benefit to Matson.

Matson expects to fund the transaction from available borrowings under its revolving credit facility and the transaction is expected to close in the third quarter 2016, subject to Hart-Scott-Rodino waiting period and other customary closing conditions.

Matson also announced that it has entered into a commitment letter under which it expects to issue $200 million of 15-year senior unsecured notes at a fixed interest rate of 3.14 percent within the next 60 days.

Proceeds of the notes are expected to be used to pay down the Company's revolving credit facility and for general corporate purposes.

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