The offering is being made through an underwriting syndicate led by Goldman, Sachs & Co. and UBS Investment Bank who will act as joint book-running managers of the offering. Co-managers include Bear, Stearns & Co. Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc.

INFO SOURCES

The Carlyle Group; Castle Harlan [Castle Harlan Partners IV, L.P.]; Regulatory Filings [SEC]; Horizon Lines; CSX Corporation (NYSE: CSX)

FIRM

Horizon Lines - We are the nation’s leading Jones Act container shipping and logistics company, accounting for approximately 37% of total U.S. marine container shipments from the continental U.S. to Alaska, Puerto Rico and Hawaii, constituting the three non-contiguous Jones Act markets, and to Guam. Under the Jones Act, enacted in 1920, the domestic U.S. maritime trade is restricted to U.S. owners of U.S.-built and flagged vessels manned by predominantly U.S.-citizen crews. We operate the largest Jones Act containership fleet with 16 vessels and approximately 22,400 cargo containers. We provide comprehensive shipping and logistics services in our markets. We have long-term access to terminal facilities in each of our ports, operating our own terminals in Alaska, Hawaii, and Puerto Rico and contracting for terminal services in our seven ports in the continental U.S. and in our ports in Guam, Hong Kong and Taiwan.

Castle Harlan is a New York-based private equity investment firm founded in 1987 specializing in investments in middle-market companies through leveraged buyouts, industry consolidations, divestitures, restructurings, turnarounds, workouts, and bankruptcies. Since its inception, Castle Harlan has invested, on behalf of the private equity funds which it manages, in 40 companies with a total enterprise value of approximately $7.0 billion. Castle Harlan has maintained a disciplined strategy and achieved success in making control investments in middle-market companies, becoming one of the premier equity sponsors within this sector. Castle Harlan’s initial investment in us of approximately $157.0 million was funded by CHP IV and its affiliates and associates. CHP IV is an investment fund, which, together with certain of its affiliated investment funds, has approximately $1.2 billion in commitments from its limited partners. CHP IV was closed in August 2003. Castle Harlan’s portfolio companies include Morton’s Restaurant Group, Inc., Ames True Temper, Inc. and Caribbean Restaurants, LLC.

FUNDING HISTORY

February 27, 2003 | The Carlyle Group acquired Horizon Lines, formerly known as CSX Lines, from CSX Corp. in a recapitalization transaction valued at $300 million.

July 08, 2004 | The Carlyle Group today announced that it has closed its sale of Horizon Lines to private equity firm Castle Harlan for a purchase price of $650 million.