September 8, 2006
Horizon Lines sets IPO price
U.S.-flag containership operator Horizon Lines says in an amended SEC filing that it is to offer 11.56 million shares, and stockholders are selling an additional 4.06 million shares. The estimated price isf $15 to $17 a share.
Horizon Lines, which is owned by investment firm Castle Harland, is the present incarnation of what was once the U.S.-flag Sea-Land fleet then later CSX Lines.
Goldman Sachs and UBS Investment are lead underwriters of the IPO, which is likely within the next few weeks. The company plans to trade on the New York Stock Exchange under the ticker symbol "HRZ."
The IPO should raise about $250 million. Horizon Lines intends to apply the net proceeds to redeem portions of the 9% senior notes due 2012 and the 11% senior discount notes due 2013 of its subsidiaries. In addition, it intends to use net proceeds from the IPO, together with available cash from its subsidiaries, to redeem all of its outstanding Series A preferred stock for $62.2 million.