Horizon Lines announced a second one-week postponement of a deadline for securing bondholders’ support for a plan to refinance the debt of the largest U.S. domestic ocean carrier.
The deadline was pushed back to June 24 from June 17. It originally was set for June 10.
Horizon said this month that a majority of bondholders agreed to swap $330 million in 4.25 percent convertible senior notes for a combination of new debt and equity. The bondholders would receive $200 million in 6 percent convertible secured notes, $80 million in cash and 56 percent of the company’s stock.
The refinancing deal is contingent on Horizon gaining commitments for an additional $350 million in new first-lien 9 percent senior secured notes.
Horizon said this month it expected to complete its refinancing by August. The company has been trying to refinance its debt to stave off a default threatened by the company's guilty plea and fine for price-fixing in the Puerto Rico shipping business.
Horizon is the largest domestic ocean carrier operating between the U.S. mainland and Puerto Rico, Alaska, Hawaii and Guam, and last December launched an eastbound trans-Pacific service from China to the U.S. West Coast.