Horizon Lines pays down debt

Horizon Lines pays down debt Horizon Lines said Friday that it has reduced its debt by making an additional payment of $5 million on its revolving credit facility, bringing the total debt reduction during the Company’s fiscal fourth quarter to $10 million.
      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.”