Horizon Lines Amends Facility
June 12, 2009
Horizon Lines, a Charlotte, N.C.-based container ship owner, has amended its $375 million credit facility.
The company reduced the size of its revolver to $225 million from $250 million and eliminated a separate $150 million facility.
To exchange, Horizon Lines increased the interest it pays its lenders by 150 bps. Before the amendment, the company paid lenders a spread in the range of Libor plus 125 bps to Libor plus 200 bps.
Lenders also allowed Horizon Lines to change the definitions of the company’s Ebitda. As of March 22, the company owed about $150 million on a revolver and $117 million on a term loan A. Horizon Lines is rated B+ by Standard & Poor’s.
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