By Paul A. Harris
St. Louis, Dec. 7 - H-Lines Finance Holding Corp. (Horizon Lines) sold $112.27 million proceeds of senior discount notes due April 1, 2013 (Caa2/CCC+) at 70.169 on Tuesday to yield 11%, according to an informed source.
Price talk was 10 3/8% to 10 5/8%.
The issue had a face amount of $160 million.
Goldman Sachs & Co. and UBS Investment Bank ran the books for the Rule 144A issue.
Proceeds will be used to refinance the company's convertible notes and to make a distribution to shareholders. The sponsor is the Carlyle Group.
The issuer is a Charlotte, N.C.-based container shipping and logistics company.
| Issuer: | H-Lines Finance Holding Corp. (Horizon Lines)
|
| Face amount: | $160 million
|
| Proceeds: | $112.27 million
|
| Maturity: | April 1, 2013
|
| Security description: | Senior discount notes
|
| Bookrunners: | Goldman Sachs & Co., UBS Investment Bank
|
| Coupon: | Zero until April 1, 2008, first cash payment Oct. 1, 2008
|
| Price: | 70.169
|
| Yield: | 11%
|
| Spread: | 692 basis points
|
| Call features: | Callable after April 1, 2008 at 105.50, 102.75, par on or after April 1, 2010
|
| Equity clawback: | Three years for 35% at 111 accreted
|
| Trade date: | Dec. 7
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Price talk: | 10 3/8%-10 5/8%
|
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