HORIZON Lines is extending its deadline for another week to arrange commitments for US$350 million in secured senior notes, a key aspect of the cash-strapped shipping line's planned refinancing.

    The shipping company earlier this month announced a majority of bondholders have agreed to swap $330 million in 4.25 per cent convertible senior notes for a combination of new debt and equity. The bondholders would receive $200 million in six per cent convertible secured notes, $80 million in cash and 56 per cent of the company's stock.

    The refinancing deal hinged on Horizon gaining commitments by June 10 for an extra $350 million in new first-lien nine per cent senior secured notes, reported Newark's Journal of Commerce, adding that the June 10 deadline was then extended till June 17.

    Horizon was cited as saying that it expects 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," the report said.

(Resource:http://www.shippingonline.cn/)