Horizon Lines Announces Notice of Fundamental Change to Holders of Its Convertible Senior Secured Notes Resulting from NYSE Delisting

CHARLOTTE, N.C., March 16, 2012 /PRNewswire/ -- Horizon Lines, Inc. (OTCQB: HRZL) today notified holders of its 6.00% Series A Convertible Senior Secured Notes due 2017 and its 6.00% Series B Mandatorily Convertible Senior Secured Notes due 2017 (collectively, the "Convertible Notes") that a Fundamental Change occurred on March 11, 2012, as a result of its shares of common stock ceasing to be listed on the New York Stock Exchange. 

In accordance with Section 14.08 of the Indenture governing the Convertible Notes, dated October 5, 2011, the Conversion Rate (as defined in the Indenture) will not be increased by additional shares of common stock of the Company in connection with this Fundamental Change.

This press release is for informational purposes only and is not an offer to buy or the solicitation of an offer to sell any security.

About Horizon Lines

Horizon Lines, Inc. is one of the nation's leading domestic ocean shipping companies and the only ocean cargo carrier serving all three noncontiguous domestic markets of Alaska, Hawaii and Puerto Rico from the continental United States.  The company maintains a fleet of 15 fully Jones Act qualified vessels and operates five port terminals in Alaska, Hawaii and Puerto Rico.  A trusted partner for many of the nation's leading retailers, manufacturers and U.S. government agencies, Horizon Lines provides reliable transportation services that leverage its unique combination of ocean transportation and inland distribution capabilities to deliver goods that are vital to the prosperity of the markets it serves.  The company is based in Charlotte, NC, and its stock trades on the over-the-counter market under the symbol HRZL.

Forward Looking Statements

The information contained in this press release should be read in conjunction with our filings made with the Securities and Exchange Commission.  See the section entitled "Risk Factors" in our Form 10-Q filed with the SEC on November 4, 2011, for a discussion of the risks and uncertainties that we face. Those factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences.

SOURCE Horizon Lines, Inc.