CSX Lines to be conveyed to Carlyle venture

CSX Corp has reached agreement to convey its domestic container shipping unit, CSX Lines LLC, to a venture formed with The Carlyle Group for approximately $300 million in cash and securities.

The transaction is subject to customary conditions and regulatory approvals. Closing is expected to take place in first-quarter 2003.

CSX Corp will receive $240 million in cash and $60 million of securities issued by the venture. It has the potential to gain additional value if certain financial targets are met.

Charles G “Chuck” Raymond, the current CSX Lines president and chief executive officer, and his management team will remain in place for the Charlotte NC-based ocean carrier, which will be renamed Horizon Lines LLC. Raymond also will chair the board of directors of the company.

Credit Suisse First Boston Corp and Wachtell, Lipton, Rosen & Katz advised CSX Corp on this transaction.

TAGS: Carriers
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