CHARLOTTE, N.C., Sept. 14, 2011 /PRNewswire/ -- 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.
About Horizon Lines
Horizon Lines, Inc., is the nation's leading domestic ocean
shipping and integrated logistics company. The company owns or
leases a fleet of 20 U.S.-flag containerships and operates five
port terminals linking the continental United States with Alaska, Hawaii, Guam,
Micronesia, and Puerto Rico. The company provides express
trans-Pacific service between the U.S. West Coast and the ports of
Ningbo and Shanghai in China, manages a domestic and overseas service
partner network and provides integrated, reliable and cost
competitive logistics solutions. Horizon Lines, Inc., is based in
Charlotte, NC, and trades on the
New York Stock Exchange under the ticker symbol HRZ.
Forward Looking Statements
The information contained in this press release should be read
in conjunction with our filings made with the Securities and
Exchange Commission. This press release contains
"forward-looking statements" within the meaning of the federal
securities laws. These forward-looking statements are
intended to qualify for the safe harbor from liability established
by the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are those that do not relate
solely to historical fact. They include, but are not limited
to, any statement that may predict, forecast, indicate or imply
future results, performance, achievements or events. Words such as,
but not limited to, "will," "intend," "expect," "would," "could,"
"must," "may," and similar expressions or phrases identify
forward-looking statements.
Factors that may cause expected results or anticipated events or
circumstances discussed in this press release to not occur or to
differ from expected results include: the ability of the parties to
agree on the final terms of the refinancing; our ability to close
on the refinancing; our ability to satisfy other conditions of the
refinancing, including satisfaction of any remaining diligence
requests; the ability of the investors to fund the refinancing;
general conditions in the capital markets; general economic
conditions; our ability to maintain adequate liquidity to operate
our business; volatility in fuel prices and in freight rates;
decreases in shipping volumes; our ability to remain Jones Act
compliant because of changes in ownership; or our ability to
continue as a going concern.
All forward-looking statements involve risk and uncertainties.
In light of these risks and uncertainties, expected results
or other anticipated events or circumstances discussed in this
press release might not occur. Forward looking statements
contained in this press release are made only as of the date of
this release, and we undertake no obligation to update any such
statements, except as otherwise required by applicable law.
See the section entitled "Risk Factors" in our Form 10-K
filed with the SEC on March 28, 2011,
for a more complete discussion of these risks and uncertainties and
for other risks and uncertainties. Those factors and the
other risk factors described therein are not necessarily all of the
important factors that could cause actual results or developments
to differ materially from those expressed in any of our
forward-looking statements. Other unknown or unpredictable
factors also could harm our results. Consequently, there can be no
assurance that actual results or developments anticipated by us
will be realized or, even if substantially realized, that they will
have the expected consequences.
SOURCE Horizon Lines, Inc.