CSX Lines $200 million credit facility to launch Tuesday

By Sara Rosenberg

New York, Jan. 13 - CSX Lines LLC is scheduled to launch a new $200 million credit facility on Tuesday afternoon. ABN Amro and UBS Warburg are joint lead arrangers on the deal, a spokesman for the Carlyle Group told Prospect News.

The loan consists of a $175 million six-year term loan B with an interest rate of Libor plus 400 basis points and a $25 million five-year revolver with an interest rate of Libor plus 350 basis points, the spokesman said.

Security for the loan is basically all of the company's assets.

Proceeds are being used to help fund the acquisition of CSX Lines for approximately $300 million by the Carlyle Group from CSX Corp. The acquisition, which was announced on Dec. 17, is expected to close during the first quarter of 2003. Under the agreement, CSX Corp. will receive $240 million in cash and $60 million of securities issued by the venture.

Moody's Investors Service rated the proposed credit facility at Ba3. Standard & Poor's rated the proposed credit facility at BB-.

CSX Lines is a Charlotte, N.C. container shipping unit. Following the completion of the acquisition CSX Lines will be renamed as Horizon Lines LLC.

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