UBS is leading a repricing for Horizon Lines that will shave 25 basis points off its existing spread. The facility, originally taken out for the purchase of the company, includes a $250 million revolver and a $250 million "C" loan, which is replacing a $250 million "B" term loan.
Pricing on the term loan was at LIBOR plus 2 3/4% but is being cut 25 basis points to LIBOR plus 2 1/2%. After the company completes an initial public offering in the coming weeks, pricing will be cut another 25 basis points. Last month the company filed a $288 million IPO led by Goldman Sachs and UBS. Proceeds from the IPO will repay some of the company's debt.
Castle Harlan bought Horizon Lines from The Carlyle Group in May 2004 for $300 million (LMW, 6/11). Carlyle had in turn bought the company from CSX in February 2003 for $300 million (1/26/03). CFO Mark Urbania's office referred questions to a spokesman, who did not return calls. Marcel Fournier, senior managing director at Castle Harlan and director of Horizon lines, declined comment.
Horizon Lines is a transportation provider that ships in Alaska, Hawaii, Puerto Rico and Guam. The company operates under the Jones Act, which requires boats used for cargo shipments between U.S. ports to be built in U.S. shipyards and owned and manned by U.S. citizens.