, Inc. has entered into a $77.4 million
secured term facility agented by The CIT Group/Equipment Financing
Inc. (the CIT Group). The credit facility has a five year term and
bears interest at LIBOR plus 4.5% per annum. The credit facility is
payable in monthly installments of $0.9 million, plus interest, for the
first 24 months beginning March 31, 2006 and $0.6 million, plus
interest, for the next 35 months, with the remaining principal and
unpaid interest due at maturity in March 2011.
The proceeds from the facility were used to repay the outstanding
amount under the Company's previous CIT Group facility maturing in
March 2006 and outstanding amount under the $70 million senior secured
term loan facility agented by Manchester Securities Corp. maturing in
March 2007 and related closing costs and fees.
Amounts outstanding under the new secured term loan facility are
secured by mortgages on most of Horizon's vessels and contains
covenants, events of default and cross-default provisions customary in
financings of this type.