Horizon Lines filed a prospectus with the U.S. Securities and Exchange Commission outlining plans by its security holders to sell a combination of stock, warrants and notes.
Horizon, the nation’s largest domestic container ships, said it will “not receive any of the proceeds from the sale of the securities by the selling security holders” which include a variety of funds, some specializing in distressed companies, and some retirement funds, such as those for Royal Mail Pension Plan, Associated British Foods Pension Scheme, and Virginia Retirement Scheme.
Securities being sold include 3.66 million shares of stock., nearly 9 million warrants, $54.6 million in aggregate principal amount of new 6 percent Series A convertible secured notes due 2017, and $30.3 million in aggregate principal amount of 6 percent Series B mandatorily convertible senior secured notes.
Horizon said filing of the registration statement was “intended to satisfy our obligations to certain security holders to register the securities issued to them pursuant to a registration rights agreement, dated Oct. 5.”
Horizon also said that shareholders meeting last Friday approved a 25-1 reverse split. Trading of Horizon’s stock was suspended on the New York Stock Exchange on Oct. 20 and began trading was over the counter. Yesterday its stock closed at 23 cents per share, close to the bottom of its 52 week range of 18 cents to $5.95. The company is appealing the suspension by the NYSE.
Horizon said registration of the securities does not necessarily mean that the selling securityholders will offer, sell or otherwise dispose of all or any of these securities.
Horizon registers securities for sale
