Debt:	3 Months Ended
Mar. 31, 2013
Debt:
Debt:	(11) Debt: The Company entered into a $375.0 million, five-year unsecured revolving credit facility with a syndicate of banks during the second quarter of 2012 in order to provide additional sources of liquidity for working capital requirements or investment opportunities on a short-term as well as longer-term basis. As of March 31, 2013, the used portion of the Company’s revolving credit facility was $11.8 million, of which $5.0 million was from cash borrowings and $6.8 million was from letters of credit. During the second quarter of 2012, Matson issued $170.0 million in unsecured, fixed rate, amortizing long-term debt. The debt was funded in three tranches; $77.5 million at an interest rate of 3.66% maturing in 2023, $55.0 million at an interest rate of 4.16% maturing in 2027, and $37.5 million at an interest rate of 4.31% maturing in 2032. The weighted average coupon and duration of the three tranches of debt are 3.97% and 9.3 years, respectively. The cash received from issuance was partially utilized to fund a contribution of cash from Matson to A&B under the terms of the Separation. Additionally, the Company negotiated the release of the MV Manulani as security for existing long-term debt of $56.0 million as part of the Company’s debt restructuring completed during the second quarter of 2012 to facilitate the Separation. This obligation was also moved from MatNav to Matson. Following the above mentioned debt financing transactions, all of Matson’s outstanding debt was unsecured, except for $70.4 million as of March 31, 2013. However, the debt is guaranteed by Matson’s significant subsidiaries. Capital Leases: In March 2013, Matson South Pacific entered into a new capital lease for specialized containers. The initial amount of the lease was $2.9 million which has been included in property on the Condensed Consolidated Balance Sheet. Also, in conjunction with the purchase of the assets of Reef Shipping Limited, the Company acquired capital leases for standard containers, which are also included in property on the Condensed Consolidated Balance Sheet. As of March 31, 2013, the capital leases acquired were $0.3 million. As of March 31, 2013, capital leases amounted to $3.2 million, of which $1.0 million has been classified as current within the notes payable and current portion on long-term debt. Total debt was $301.1 million, as of March 31, 2013, compared with $319.1 million at the end of 2012. Principal negative covenants as defined in Matson’s five-year revolving credit facility (the “Credit Agreement”) and long-term fixed rate debt include, but are not limited to: a) The ratio of debt to consolidated EBITDA cannot exceed 3.25 to 1.00 for each fiscal four quarter period; b) the ratio of consolidated EBITDA to interest expense as of the end of any fiscal four quarter period cannot be less than 3.50 to 1.00; and c) The principal amount of priority debt at any time cannot exceed 20% of consolidated tangible assets; and the principal amount of priority debt that is not Title XI priority debt at any time cannot exceed 10% of consolidated tangible assets. Priority debt, as further defined in the Credit Agreement, is all debt secured by a lien on the Company’s assets or subsidiary debt. The Company was in compliance with these covenants as of March 31, 2013.

(11) Debt: The Company entered into a $375.0 million, five-year unsecured revolving credit facility with a syndicate of banks during the second quarter of 2012 in order to provide additional sources of liquidity for working capital requirements or investment opportunities on a short-term as well as longer-term basis. As of March 31, 2013, the used portion of the Company’s revolving credit facility was $11.8 million, of which $5.0 million was from cash borrowings and $6.8 million was from letters of credit.

During the second quarter of 2012, Matson issued $170.0 million in unsecured, fixed rate, amortizing long-term debt. The debt was funded in three tranches; $77.5 million at an interest rate of 3.66% maturing in 2023, $55.0 million at an interest rate of 4.16% maturing in 2027, and $37.5 million at an interest rate of 4.31% maturing in 2032. The weighted average coupon and duration of the three tranches of debt are 3.97% and 9.3 years, respectively. The cash received from issuance was partially utilized to fund a contribution of cash from Matson to A&B under the terms of the Separation. Additionally, the Company negotiated the release of the MV Manulani as security for existing long-term debt of $56.0 million as part of the Company’s debt restructuring completed during the second quarter of 2012 to facilitate the Separation. This obligation was also moved from MatNav to Matson. Following the above mentioned debt financing transactions, all of Matson’s outstanding debt was unsecured, except for $70.4 million as of March 31, 2013. However, the debt is guaranteed by Matson’s significant subsidiaries.

Capital Leases: In March 2013, Matson South Pacific entered into a new capital lease for specialized containers. The initial amount of the lease was $2.9 million which has been included in property on the Condensed Consolidated Balance Sheet. Also, in conjunction with the purchase of the assets of Reef Shipping Limited, the Company acquired capital leases for standard containers, which are also included in property on the Condensed Consolidated Balance Sheet. As of March 31, 2013, the capital leases acquired were $0.3 million. As of March 31, 2013, capital leases amounted to $3.2 million, of which $1.0 million has been classified as current within the notes payable and current portion on long-term debt.

Total debt was $301.1 million, as of March 31, 2013, compared with $319.1 million at the end of 2012.

Principal negative covenants as defined in Matson’s five-year revolving credit facility (the “Credit Agreement”) and long-term fixed rate debt include, but are not limited to:

a) The ratio of debt to consolidated EBITDA cannot exceed 3.25 to 1.00 for each fiscal four quarter period;

b) the ratio of consolidated EBITDA to interest expense as of the end of any fiscal four quarter period cannot be less than 3.50 to 1.00; and

c) The principal amount of priority debt at any time cannot exceed 20% of consolidated tangible assets; and the principal amount of priority debt that is not Title XI priority debt at any time cannot exceed 10% of consolidated tangible assets. Priority debt, as further defined in the Credit Agreement, is all debt secured by a lien on the Company’s assets or subsidiary debt.

The Company was in compliance with these covenants as of March 31, 2013.