Horizon Stockholders Approve Reverse Stock Split

press release
Monday, December 12, 2011

Horizon Lines Stockholders Approve 1-for-25 Reverse Stock Split at Special Stockholder Meeting.

  
Horizon Lines, Inc. (OTCQB: HRZL) announced that stockholders at the company's special stockholders meeting on December 2, 2011, voted to approve, among other things, a 1-for-25 reverse stock split.
 
Stockholders also approved the other three proposals presented at the special meeting. Stockholders approved amending the company's certificate of incorporation to authorize the issuance of warrants in lieu of cash or redemption notes in consideration for "Excess Shares" to holders who cannot establish U.S. citizenship to facilitate compliance with the Jones Act. Stockholders also approved the company's restated certificate of incorporation to combine into one document all of the provisions of the prior certificate of incorporation, the elimination of certain inapplicable provisions and the amendments approved by stockholders at the special stockholders meeting. Additionally, stockholders approved the company's proposal to increase the authorized number of shares to 2.5 billion from 100.0 million; however, the share increase proposal would only have become effective if the reverse stock split had not been approved by stockholders.
 
Approximately 83.4% of the company's 56.6 million shares eligible to vote were represented in the voting, which was open to stockholders of record as of October 7, 2011. With the proposals passed, the company on December 7, 2011, filed its restated certificate of incorporation to, among other things, effect the 1-for-25 reverse stock split. The reverse stock split reduces the number of shares of common stock outstanding to 2.3 million from 56.7 million.
 
"The reverse stock split is a strategically important step that will help the company meet minimum stock price listing standards that are required by the national stock exchanges," said Stephen H. Fraser, Horizon Lines President and Chief Executive Officer. "The reverse split, when combined with our focus on executing the planned deleveraging of our existing indebtedness and successful execution of our business plan, should help Horizon attract quality investors and analysts over time."
 
As previously disclosed, the company's recapitalization plan announced in October allows, in certain circumstances, Horizon Lines to reduce outstanding debt by $49.7 million in January by mandatorily converting a portion of the 6.00% convertible Series B notes for common stock or warrants at $18.25 per share (post split). Horizon Lines also has the opportunity to reduce debt by another $49.7 million in July 2012 by issuing equity or warrants at $18.25 per share (post split) through a mandatory conversion of the Series B notes, provided certain conditions are satisfied. Additionally, beginning October 5, 2012, the company has the right to convert, at its option, in whole or in part, into common stock or warrants approximately $178.8 million of 6.00% Series A convertible notes, provided that the 30-trading-day, volume-weighted average price of the common stock is at least $15.75 (post split) per share at the conversion date. 
 
Horizon Lines, Inc. owns or leases a fleet of 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii and Puerto Rico. The company also provides integrated, reliable and cost competitive logistics solutions. Horizon Lines, Inc., is based in Charlotte, NC, and trades on the OTCQB Marketplace under symbol HRZL.

Maritime Reporter April 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Ship Management Says Concerned for Crew After Iran Fires Shots

Rickmers Shipmanagement, the Singapore-based company that has chartered the Maersk Tigris, said Iranian officials fired warning shots at the container ship and boarded it on Tuesday.

Videotel Training Film Wins Media Award

Videotel, the international provider of e-Learning maritime training solutions and a company of KVH Industries, Inc., has received a Golden Reel Award from the

EBDG Remembers James A. Cole

Fishing vessel expert and award-winning author, leaves legacy of excellence   EBDG announced the passing of Jim Cole. Over the span of a half century, Jim distinguished

Finance

Committee to Consider Coast Guard Authorization Bill

The U.S. Committee on Transportation and Infrastructure, chaired by U.S. Rep. Bill Shuster (R-Pa.), will mark up legislation this week that authorizes United States

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Canada Invests In Port Lambton Rescue Station

Inshore Rescue Boat Station upgraded as part of federal infrastructure commitment   On behalf of the Honorable Gail Shea, Minister of Fisheries and Oceans, Pat Davidson,

Container Ships

Iran: Revolutionary Guards Seized Ship for Legal Reasons

Naval units from Iran's elite Islamic Revolutionary Guards Corps (IRGC) seized a cargo ship in the Gulf on Tuesday for legal reasons, an IRGC source was quoted as saying by state news agency IRNA.

Ship Management Says Concerned for Crew After Iran Fires Shots

Rickmers Shipmanagement, the Singapore-based company that has chartered the Maersk Tigris, said Iranian officials fired warning shots at the container ship and boarded it on Tuesday.

Iranian Navy Seized Ship Under Court Order -Fars

The Iranian navy seized a ship on Tuesday at the request of Iran's Ports and Maritime Organization, the English-language service of Iran's semi-official Fars News Agency reported.

Logistics

Jeffersonville Port Sets Quarterly Shipping Record

The Port of Indiana-Jeffersonville recorded the highest quarterly shipments in its 30-year history during the first quarter of 2015. Cargo volume exceeded 800,000 tons,

Med Crude-Urals Stronger in Baltic as Surgut Sells Cargoes

Russian Urals crude price differentials strengthened in the Baltic in a spot tender on Tuesday after loading schedules confirmed scarce export volumes for May.   There

Baltic Index Inches Up, Vessel Activity Muted

The Baltic Exchange's main sea freight index, which tracks rates for ships carrying dry bulk commodities, inched up on Monday amid muted shipping activity.   The overall index,

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Navigation Pod Propulsion Port Authority Ship Electronics Shipbuilding / Vessel Construction 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: 0.2009 sec (5 req/sec)