The New York Stock Exchange said it would delist the common stock of Horizon Lines, which this month completed a $652.8 million refinancing that left bondholders with most of the company’s shares, the Journal of Commerce reports.
Horizon said its stock would be traded over the counter beginning next Thursday under a stock symbol to be determined. The company’s NYSE stock symbol is HRZ.
The NYSE advised Horizon last summer that it faced delisting for failing to meet the exchange’s requirement for an average market capitalization of $50 million and an average closing price of at least $1 per share over 30 consecutive trading days.
The exchange agreed to allow Horizon to retain its NYSE listing while it completed a complex refinancing that staved off the threat of bankruptcy.
Horizon stock closed Thursday at 32 cents a share. Its 52-week high was $5.95 before the company agreed last February to plead guilty to a felony antitrust violation for price-fixing in the Puerto Rico trade.
Under the plea agreement, Horizon agreed to a $45 million fine, later reduced to $15 million, that threatened the company with debt defaults and necessitated the refinancing.
“The transition from the NYSE to the OTC does not place us in violation of our new refinancing agreements,” a Horizon spokesperson said. “More importantly, it does not reflect the underlying financial soundness of our company. In fact, our recent successful refinancing positions our company with adequate liquidity to fund continuing operations and affords us the opportunity to grow our business and reduce debt over time.”
Horizon is the largest U.S. domestic ocean carrier. It operates in domestic trades between the U.S. mainland and Puerto Rico, Alaska, Hawaii and Guam, and has an international service from China to the U.S. West Coast.
Horizon said its stock would be traded over the counter beginning next Thursday under a stock symbol to be determined. The company’s NYSE stock symbol is HRZ.
The NYSE advised Horizon last summer that it faced delisting for failing to meet the exchange’s requirement for an average market capitalization of $50 million and an average closing price of at least $1 per share over 30 consecutive trading days.
The exchange agreed to allow Horizon to retain its NYSE listing while it completed a complex refinancing that staved off the threat of bankruptcy.
Horizon stock closed Thursday at 32 cents a share. Its 52-week high was $5.95 before the company agreed last February to plead guilty to a felony antitrust violation for price-fixing in the Puerto Rico trade.
Under the plea agreement, Horizon agreed to a $45 million fine, later reduced to $15 million, that threatened the company with debt defaults and necessitated the refinancing.
“The transition from the NYSE to the OTC does not place us in violation of our new refinancing agreements,” a Horizon spokesperson said. “More importantly, it does not reflect the underlying financial soundness of our company. In fact, our recent successful refinancing positions our company with adequate liquidity to fund continuing operations and affords us the opportunity to grow our business and reduce debt over time.”
Horizon is the largest U.S. domestic ocean carrier. It operates in domestic trades between the U.S. mainland and Puerto Rico, Alaska, Hawaii and Guam, and has an international service from China to the U.S. West Coast.