Horizon Lines to get $100 million asset-based revolver due 2016

By Angela McDaniels

Tacoma, Wash., Sept. 26 - Horizon Lines, Inc. and Horizon Lines, LLC plan to enter into a new $100 million asset-based revolving loan facility due 2016, according to an S-4 filing with the Securities and Exchange Commission.

The new loan is part of the company's plan to refinance its capital structure.

The companies will enter into the loan when the exchange offer for Horizon Lines' $330 million of 4.25% convertible senior notes due 2012 is consummated. The exchange offer is scheduled to end at 11:59 p.m. ET on Sept. 27.

The interest rate will be Libor plus 225 basis points to 375 bps. The commitment fee will be 37.5 bps to 50 bps.

Wells Fargo Capital Finance, LLC is the administrative agent and collateral agent.

The loan will include a letter-of-credit subfacility of up to $30 million and a swingline subfacility, the amount of which is to be determined.

There will be a $25 million accordion.

The proceeds will be used to pay fees and expenses in connection with the recapitalization and the exchange offer and for working capital and other general corporate purposes.

The company will also issue $225 million of new 11% first-lien senior secured notes due 2016 and $100 million of new second-lien senior secured notes due 2016.

The proceeds will be used to, among other things, refinance the company's existing senior credit facility.

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

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