Horizon greenshoe exercised, raising convertibles offering to $330 million

By Devika Patel

New York, Aug. 9 - Horizon Lines, Inc. said the underwriters of its 4.25% convertible notes due Aug. 15, 2012 exercised their $30 million over-allotment in full, upping the deal to $330 million.

The notes priced on Aug. 2 and settled on Aug. 8. They were sold with a 30% initial conversion premium.

As previously reported, Goldman Sachs, Banc of America Securities and Wachovia Securities were the bookrunners.

The bonds are non-callable for life and there are no put options.

Horizon Lines plans to use the proceeds to buy back approximately 1 million shares of its common stock and to enter into a convertible hedge transaction.

Horizon Lines is a Charlotte, N.C.-based container shipping and integrated logistics operations company.

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