Saturday, January 23, 2021
Hawai'i Free Press

Current Articles | Archives

Wednesday, October 19, 2011
Horizon Lines Avoids Bankruptcy, But Delisted by NYSE
By Selected News Articles @ 5:31 PM :: 13569 Views :: Maui County, Education K-12, Energy, Environment, National News, Ethics, World News, Family

Horizon Completes $652.8 Million Refinancing: Move saves largest U.S. domestic ocean carrier from bankruptcy

by Joseph Bonney, Senior Editor, The Journal of Commerce Online 10/6/2011

Horizon Lines completed a complicated $652.8 million refinancing that saves the largest U.S. domestic ocean carrier from bankruptcy and will leave bondholders with most of the company's stock. The carrier had struggled to straighten its finances since pleading guilty last March to price-fixing in the Puerto Rico trade. Horizon operates between the U.S. mainland and Puerto Rico, Alaska, Hawaii and Guam and from China to the U.S. West Coast.

"We now have a new capital structure that eliminates the refinancing uncertainty faced by our company over the past several months and better positions us for the future," said Stephen H. Fraser, Horizon's president and CEO. "We have put in place a solid financial foundation that affords us the opportunity to grow our business and significantly reduce debt over time."

Under the refinancing, holders of 99.3 percent of the company's 4.25 percent convertible notes due in 2012 will exchange their notes for a total of $278.1 million of new 6 percent convertible notes and $49.7 million in common stock and warrants. The newly issued notes are in two levels - 99.3 million that must be converted into common stock within the next nine months, and $178.8 million that the company may convert to common stock after a year.

The deal would leave bondholders with more than 61 percent of the company's shares, a total that will rise to about 95 percent if all of the newly issued convertible notes are converted into stock. In addition, holders of the company's 4.25 senior convertible notes and other parties purchased $225 million of first-lien secured notes and $100 million of second-lien secured notes paying 13 to 15 percent interest and maturing in five years.

The company and its subsidiaries also entered a $100 million, asset-based credit facility arranged by Wells Fargo Capital Finance. The credit facility has a floating rate that initially will be 3.25 percent over LIBOR. Proceeds from the first-lien notes and the second-lien notes satisfied the $266.4 million in principal, interest and fees that Horizon owed under its previous first-lien revolving credit facility and term loan. Horizon had said that without the refinancing, it would have had to seek bankruptcy protection.

In pleading guilty to a felony antitrust charge in the Puerto Rico case, Horizon accepted a $45 million fine that threatened to put the company in default of its debt covenants. The Justice Department later agreed to reduce the fine to $15 million, saying that was all Horizon could pay without jeopardizing its viability.

The company's common stock closed Wednesday at 41 cents a share. It traded at $5.89 this year before the company announced its guilty plea.



NY Stock Exchange to suspend Horizon

American Shipper 10/14/2011


The New York Stock Exchange said Thursday it determined that the common stock of Horizon Lines should be suspended prior to the market opening on Thursday, Oct. 20.
The company expects to commence trading on the over-the-counter market that same day under a symbol yet to be determined.

NYSE said the decision to suspend Horizon’s common stock was reached because the company had fallen below its $15 million continued listing standard for average global market capitalization over a consecutive 30-day trading period.

Horizon's stock closed at 32 cents per share on Thursday, near the bottom of its 52-week range of 25 cents to $5.95.

Last week Horizon completed a $652.8 million comprehensive refinancing that it said will give it adequate liquidity to fund continuing operations and the ability to achieve substantial additional debt reduction.

"We now have a new capital structure that eliminates the refinancing uncertainty faced by our company over the past several months and better positions us for the future," said Stephen H. Fraser, Horizon’s president and chief executive officer, in a statement. "We have put in place a solid financial foundation that affords us the opportunity to grow our business and significantly reduce debt over time."


JOC: NYSE to Delist Horizon Lines 


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

ACA Signups Hawaii


Alliance Defending Freedom

Aloha Pregnancy Care Center

American Council of Trustees and Alumni


Antonio Gramsci Reading List

A Place for Women in Waipio

Astronomy Hawaii

Ballotpedia Hawaii

Better Hawaii

Blaisdell Memorial Project

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

Coffee Break

DVids Hawaii

E Hana Kakou Kelii Akina


Fix Oahu!

Follow the Money Hawaii

Frank in Hawaii

Front Page Magazine

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute

Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii Coalition Against Legalized Gambling

Hawaii ConCon Info

Hawaii Credit Union Watch

Hawaii Crop Improvement Association

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Advocates

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii Future Project

Hawaii Gathering of Eagles

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii March for Life

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together

Heritage Foundation



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Navy League

Honolulu Traffic

House Minority Blog

I Vote Hawaii

If Hawaii News

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

Iowa Meets Maui

Jackson v Abercrombie

Jihad Watch

July 4 in Hawaii

Kahle v New Hope

Kakaako Cares

Kau TEA Party

Kauai Co GOP

Keep Hawaii's Heroes


Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui

Mauna Kea Recreational Users Group

Middle East Forum--The Legal Project

Mililani Conservatives for Change

Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

Muslim Brotherhood in America

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

National Wind Watch

New Hawaiian

New Zeal

NFIB Hawaii News

No GMO Means No Aloha

Northwest Economic Policy Seminar

Not Dead Yet, Hawaii

Now What I Really Think

NRA-ILA Hawaii

Oahu Alternative Transport

ObamaCare Abortion Hawaii


OHA Lies

Opt Out Today

Pacific Aviation Museum

Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Pritchett Cartoons

Pro-GMO Hawaii


Rental by Owner Awareness Assn

Republican Party -- Hawaii State

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

Save Dillingham Airfield

School Choice in Hawaii

Sink the Jones Act

Statehood for Guam

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu

West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii