The payments of $10 million in the fourth quarter are in addition to $22.5 million of voluntary payments made in the second and third quarters and reduce borrowings on Horizon Lines’ $250 million revolving credit facility to $147.5 million and total debt outstanding to $598 million.
Mike Avara, senior vice president and chief financial officer, said, “These debt reductions and the associated interest expense savings further strengthen Horizon Lines’ financial position. The company will endeavor to make additional voluntary principal reductions before its fiscal year-end.”
The company’s announcement comes just days after the financial rating company Moody’s Investors Service downgraded ratings on the debt of the domestic shipping company. Moody’s said the downgrades “were prompted by 2008 operating results that continue to trail expectations, both from the time of Horizon’s August 2007 refinancing and from the company’s 2008 quarterly earnings calls.”
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
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The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now