Athens: Ship Finance International (SFI) sold its stake in Horizon Lines to Matson Navigation for a net total of around $72m, which should turn a healthy profit for the Fredriksen-led company.
SFI expects the sale to generate a book gain of around $45m in its second-quarter 2015 results. The cash proceeds are expected to be reinvested in new assets, the company said.
Matson completed its takeover of Horizon Lines last week, acquiring all the company’s outstanding stock for $0.72 per fully diluted common share or $69m in total.
It also repaid Horizon’s outstanding debt, making the transaction’s gross aggregate value around $469m.
SFI received $40m of Horizon Lines second-lien notes and 9.25 million warrants in Horizon Lines in April 2012, as compensation for Horizon’s early termination of charters for five 2,824-teu container vessels.
Matson paid SFI $0.72 per warrant. The second-lien notes were redeemed “at a premium”, having accumulated 15% interest annually on a non-cash basis since 2012, SFI said today.
Jones-Act container line Horizon sold its Hawaii trade lane assets and liabilities to The Pasha Group for $141.5m, after which Matson purchased the rest of the company, including Horizon’s operations in Alaska.