Horizon Lines prolongs consent solicitation for 4.25% convertibles

By Jennifer Chiou

New York, March 11 - Horizon Lines, Inc. announced the extension of the consent solicitation for its $330 million of 4.25% convertible senior notes due 2012 to 5 p.m. ET on March 24 from March 10.

As already reported, the company is seeking a waiver of a default or event of default that would have arisen from the $45 million fine that Horizon has agreed to pay to settle the Department of Justice investigation upon acceptance of the plea agreement by the U.S. District Court for the District of Puerto Rico.

The solicitation is conditioned upon the receipt of consents from holders of a majority in principal amount of the notes.

Consents may only be revoked before the required consents are received.

Promptly after the consent date, Horizon Lines will pay holders of record as of 5 p.m. ET on March 1 who have delivered their consents $1.00 in cash for each $1,000 principal amount of notes.

In connection with the solicitation and a credit agreement amendment, Horizon said it intends to now file its Form 10-K on or before March 28.

Moelis & Co. (212 883-3813 or 212 883-3544) is the solicitation agent, and i-Deal, LLC (888 593-9546 or 212 849-5000) is the information and tabulation agent.

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

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