Horizon saved from bankruptcy with US$650 million refinancing deal Sunday, 09.Oct.2011, 20:52 (GMT+3) TROUBLED Horizon Lines, brought to near insolvency by a US$15 million
price-fixing fine, reduced from $45 million, has made a $650 million
financial restructuring deal
TROUBLED Horizon Lines, brought to near insolvency by a US$15 million
price-fixing fine, reduced from $45 million, has made a $650 million
financial restructuring deal that delivers America's biggest shipping
line into the hands of its bondholders and rescues the company from
bankruptcy.
"We now have a new capital structure that eliminates the refinancing
uncertainty faced by our company. We have put in place a solid financial
foundation that affords us the opportunity to grow our business and
reduce debt," said company president CEO Stephen Fraser.
Under the deal, holders of 99.3 per cent of the company's 4.25 per cent
convertible notes due in 2012 will exchange their notes for $278.1
million of new six per cent convertible notes and $49.7 million in
common stock and warrants, reported London's International Freighting
Weekly. This leaves bondholders with 61 per cent of the shares, or as
much as 95 per cent if all new convertible notes were exchanged for
stock.
Horizon, based in Charlotte, North Carolina, and its subsidiaries also
took on a $100 million, asset-based credit facility arranged by Wells
Fargo Capital Finance, said the report.
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