Horizon Lines, Inc. (NYSE: HRZ), announced that it has made another voluntary debt reduction payment of $7.5m on its revolving credit facility.
The payment is the third made by Horizon Lines in its fiscal fourth quarter and brings the total voluntary debt reduction to $17.5m for the quarter and to $40m since the second quarter. The principal payment reduces borrowings on its $250m revolving credit facility to $140m, and total debt outstanding to $590.5m.
“Cash flow in the fourth quarter remains strong, even more so than we expected, and as a result we are repaying another $7.5m of debt today, which is more than we previously planned,” said Mike Avara, Senior Vice President and Chief Financial Officer. “Our stated objective in these unsettled economic times is to use free cash flow to pay down debt, which further strengthens our ability to operate in this environment. We hope to make additional voluntary principal reductions before fiscal year-end, and we continue to expect to generate adjusted EBITDA at or above the midpoint of our guidance range of $120m to $130m for the year.”
Horizon Lines, Inc. is comprised of two primary operating subsidiaries. Horizon Lines, LLC owns or leases a fleet of 21 U.S.-flag containerships and 5 port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico.