New Issue: Horizon Lines sells $250 million eight-year notes to yield 9%

By Paul A. Harris

St. Louis, June 30 - Horizon Lines Holding Corp. sold $250 million of eight-year senior notes (B3/B-) at par on Wednesday to yield 9%, according to a syndicate source.

Price talk was 9% to 9¼%.

Goldman Sachs & Co. and UBS Investment Bank ran the books for the Rule 144A issue. ABN Amro was the co-manager.

Proceeds will be used to help fund Castle Harlan Inc.'s acquisition of Horizon Lines from the Carlyle Group for $650 million.

The issuer is a Charlotte, N.C., container shipping company.

Issuer:	Horizon Lines Holding Corp.
Amount:	$250 million
Maturity:	Nov. 1, 2012
Security description:	Senior notes
Bookrunners:	Goldman Sachs & Co., UBS Investment Bank
Co-manager:	ABN Amro
Coupon:	9%
Price:	Par
Yield:	9%
Spread:	456 basis points
Call features:	Callable after Nov. 1, 2008 at 104.50, 102.25, par on or after Nov. 1, 2010
Equity clawback:	Until Nov. 1, 2007 for 35% at 109.0
Pricing date:	June 30
Settlement date:	July 7
Ratings:	Moody's: B3
	Standard & Poor's: B-
Price talk:	9%-9¼%

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