Horizon Lines evaluating refinancing options, plans loan amendment

By Sara Rosenberg

New York, Feb. 24 - Horizon Lines Inc. is working with a financial advisor on pursuing refinancing options and an amendment to its credit facility, according to a news release.

Regarding the amendment, the company is looking to waive a default that would be triggered by a possible $45 million fine.

This fine would be paid over five years to settle a case with the Antitrust Division of the U.S. Department of Justice, if court approval for the newly reached plea agreement is obtained.

The company also is requesting, by early March, relief from anticipated future financial covenant non-compliance while it seeks new long-term financing.

"Horizon Lines and its advisors are engaging in constructive discussions with lenders to identify the best refinancing options for our company. We are working closely with our lenders and targeting completion of the refinancing process in the second or third quarter," said Michael T. Avara, senior vice president and chief financial officer, in the release.

Moelis & Co. is acting as the company's financial advisor and legal firm Kirkland & Ellis LLP is assisting in these transactions as well.

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

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