Horizon Lines Closes on Bridge Loan

Wednesday, September 14, 2011

Company Makes $7.0 Million Semi-Annual Interest Payment on 4.25% Convertible Notes within Grace Period. Refinancing of Company's Capital Structure on Schedule.


Horizon Lines, Inc. (NYSE: HRZ) today announced that it has closed on a bridge loan facility of up to $25.0 million from certain of its 4.25% convertible note holders, as part of the comprehensive refinancing agreement between the company and its note holders announced late last month. The company also reached an agreement with its existing bank group to amend its current credit facility to accommodate the bridge loan.
 
The company also has made the $7.0 million semi-annual interest payment on its existing $330.0 million of 4.25% convertible notes. The interest payment was originally due on August 15, 2011, but the company elected to make the payment within the 30-day grace period. "We very much appreciate the support of both our note holders and lender group as we proceed with a transaction that will culminate in the comprehensive refinancing of the company's capital structure," said Michael T. Avara, Executive Vice President and Chief Financial Officer. "Our refinancing remains on schedule and the new bridge loan, when combined with existing revolver availability, provides us with more than $35 million of liquidity to bridge the company to the closing of the refinancing." At the closing of the refinancing of the company's capital structure, the $25.0 million amount of the bridge loan will be exchanged for a like principal amount of debt that will be included in the $100.0 million of new second-lien 13%-to-15% secured notes to be issued as part of the refinancing. A copy of the amendment to the existing credit agreement and the bridge loan agreement will be included as an exhibit to a current report on Form 8-K to be filed with the SEC. 
 

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter June 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

ClassNK Amends IGC Code Rules and Guidance

Classification society ClassNK has amended its Rules and Guidance for the Survey and Construction of Steel Ships in response to the latest industry developments,

Legal

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

SOLAS Container Mass Verification Rule Enter into force

A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship enters into force today (1 July 2016). It will assist in

Paris MoU Reports Decrease in 'Bans'

Paris MoU reports that 2015 shows a large decrease in the refusal of access (“bans”) within the region: 11 bans compared to 20 in 2014. The detention percentage has remained stable at 3.

Finance

Baltic Index Rises on Increased Demand Across Segments

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, rose on Thursday on higher demand across all vessel segments.

PALFINGER Finalizes Harding Acquisition

The PALFINGER Group closed the acquisition of 100 percent of the shares in Herkules Harding Holding AS, i.e. the globally operating Harding Group, supplier of lifesaving

Beijing Slams South China Sea Court Proceedings

Permanent Court of Arbitration ruling set for July 12. An international court said it would deliver a hotly anticipated ruling in the Philippines' case against

Container Ships

Xeneta: No Silver Lining for Container Shipping in Brexit Storm

Xeneta, a  global benchmarking and market intelligence platform for containerized ocean freight, believes that the UK’s decision to leave the European Union will

SOLAS Container Mass Verification Rule Enter into force

A new regulation requiring the gross mass of a container to be verified before it is loaded onto a ship enters into force today (1 July 2016). It will assist in

UASC Shareholding States Vote to Back Hapag-Lloyd Merger

United Arab Shipping Company (UASC) said its six shareholding states backed a merger deal with German container shipping line Hapag-Lloyd AG at a meeting on Wednesday.

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Navigation Offshore Oil Pipelines Ship Electronics Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.0883 sec (11 req/sec)