Horizon Lines said it expects to complete a $655 million refinancing by Thursday following agreement by holders of 99.3 percent of its convertible notes to swap their bonds for a combination of stock and new debt, the Journal of Commerce reports.
The largest U.S. ocean carrier had extended the deadline for the holders of the company’s $330 million in convertible notes to agree to the exchange. The deadline expired Monday with 99.3 percent of the bondholders agreeing to the exchange and “to remove substantially all of the restrictive covenants and certain events of default” from the indenture covering the notes.
Horizon has been struggling to straighten its finances since pleading guilty last March to price-fixing in the Puerto Rico trade and agreeing to a $45 million fine, later reduced to $15 million, that threatened to put the company in default of bond covenants.
The largest U.S. ocean carrier had extended the deadline for the holders of the company’s $330 million in convertible notes to agree to the exchange. The deadline expired Monday with 99.3 percent of the bondholders agreeing to the exchange and “to remove substantially all of the restrictive covenants and certain events of default” from the indenture covering the notes.
Horizon has been struggling to straighten its finances since pleading guilty last March to price-fixing in the Puerto Rico trade and agreeing to a $45 million fine, later reduced to $15 million, that threatened to put the company in default of bond covenants.