Horizon Lines amends senior credit facility
U.S. Jones Act carrier Horizon Lines Inc. said Tuesday it has amended its senior credit facility.
The primary components of the amendment to the former $250 million term loan and $50 million revolving credit facility include:
* Increasing the revolving credit facility by $25 million to $75 million.
* Increasing the additional term loan borrowing availability by $25 million to $75 million.
* Raising the annual capital spending limit to $40 million, exclusive of vessel and equipment lease buyouts.
* Allowing for 100 percent carryover of unutilized permitted annual capital spending.
* Increasing maximum restricted payments on a rolling four quarters basis from $15 million to $36 million.
* Providing 100 percent credit for voluntary loan prepayments on the required annual excess cash flow sweep now commencing in 2007.
* Increasing permitted acquisitions from $30 million to $120 million annually and from $100 million to $200 million over the life of the facility.
'This amendment provides Horizon Lines with the greater flexibility to meet its future growth needs in a cost effective manner,' said Mark Urbania, Horizon Lines' senior vice president and chief financial officer.
'The amendment also serves as recognition of Horizon Lines' improved credit standing brought about by the significant de-leveraging achieved since Horizon Lines' initial public offering in September 2005 through both earnings growth and debt prepayments. We plan to continue to de-leverage in the future via both debt prepayments and earnings growth,' Urbania added.