Horizon Lines in-market with upsized revolver, term loan repricing

By Sara Rosenberg

New York, March 28 - Horizon Lines LLC is in-market with a $300 million amended and restated credit facility that increases its existing revolving credit facility size and lowers pricing on its term loan debt by 25 basis points through a $250 million term loan C, according to a market source.

The revolver size is increased to $50 million from $25 million.

The term loan C is priced with an interest rate of Libor plus 250 basis points, compared to current pricing of Libor plus 275 basis points on the $250 million term loan B that will be refinanced through this deal.

The term loan C also includes a step down to Libor plus 225 basis points upon successful completion of the company's proposed initial public offering of common stock, the source said.

Proceeds from the IPO will go toward the repayment of some senior notes and some senior discount notes, the redemption of all outstanding shares of series A preferred stock and to fund a dividend payment to the holders of class B common stock.

Commitments and consents are due from lenders on Friday. The deal was launched to existing lenders on March 24.

UBS is the lead bank on the credit facility.

Horizon Lines is a Charlotte, N.C., container shipping company.

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