Taylor Brian W 4
4 · Horizon Lines, Inc. · Filed Mar 16, 2009
Insider Transaction Report
Form 4
Taylor Brian W
Pres., Horizon Lines Logistics
Transactions
- Other
Prepaid Variable Share Forward Purchase Contract
2009-03-16−52,000→ 0 totalExp: 2009-03-16→ Common Stock (52,000 underlying) - Other
Common Stock, par value $0.01 per share
2009-03-16−52,000→ 252,035 total
Footnotes (2)
- [F1]On March 16, 2009 (the "Settlement Date"), the Reporting Person settled his obligation to deliver 52,000 shares of the issuer's common stock, par value $0.01 ("Common Stock") pursuant to a prepaid variable forward purchase contract (the "PVF Contract") entered into on March 16, 2007 (the "Trade Date") with an unrelated third party (the "Buyer"). The PVF Contract obligated the Reporting Person to deliver up to 52,000 shares of Common Stock upon the maturity of the PVF Contract. In exchange for pledging or agreeing to deliver 52,000 shares, the Reporting Person received a cash payment of $1,253,402.75 within three business days of the Trade Date. The Reporting Person pledged the Common Stock to secure his obligations under the PVF Contract.
- [F2](continuation of footnote 1) During the term of the PVF Contract, and prior to delivering the pledged Common Stock, the Reporting Person retained voting and dividend rights in the Common Stock. The PVF Contract provided that if the market-price of the issuer's Common Stock was less than or equal to a floor price of $29.7579 per share on the Settlement Date, then the Reporting Person was to deliver 52,000 shares of Common Stock to the Buyer. On the Settlement Date, the market-price of the issuer's Common Stock pursuant to the PVF Contract was $3.16. More information with respect to the PVF Contract is set forth on a Form 4 filed by the Reporting Person with the Securities and Exchange Commission on March 19, 2007 and is incorporated herein by reference.