Horizon Lines seeks waiver from 4.25% convertibles holders

By Marisa Wong

Madison, Wis., March 1 - Horizon Lines, Inc. has started soliciting consents from holders of its $330 million of outstanding 4.25% convertible senior notes due 2012 to a proposed waiver, according to a news release.

Horizon Lines is seeking a waiver of a default or event of default that may arise under the notes' indenture relating to a potential judgment the company expects to be entered by a court. Horizon Lines entered into a plea agreement on Feb. 23 with the Antitrust Division of the U.S. Department of Justice to resolve issues presented by the government's investigation of the company.

The consent solicitation will expire at 5 p.m. ET on March 10.

The solicitation is conditioned upon the receipt of consents from holders of a majority in principal amount of the notes.

Consents may only be revoked before the required consents are received.

Promptly after the consent date, Horizon Lines will pay holders of record as of 5 p.m. ET on March 1 who have delivered their consents $1 in cash for each $1,000 principal amount of notes.

Moelis & Co. (212 883-3813 or 212 883-3544) is the solicitation agent, and i-Deal, LLC (888 593-9546 or 212 849-5000) is the information and tabulation agent.

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

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