Horizon Lines, Inc. (NYSE: HRZ) announced that it has reached an agreement with its bank group to amend its credit facility.
The amendment relaxes compliance under the credit facility's financial covenants for the second quarter, and will thereby preserve access to liquidity under the revolver and facilitate the company's ability to move forward with its previously announced refinancing effort.
"We appreciate the continued support of our lender group while we navigate through the complex process of refinancing our entire capital structure," said Michael T. Avara, Executive Vice President and Chief Financial Officer. "This amendment will provide additional financial covenant flexibility as we work with our banks and our convertible note holders towards a comprehensive refinancing, which we announced earlier this month."
A copy of the credit agreement amendment is included as an exhibit to a current report on Form 8-K that Horizon Lines is filing with the SEC on June 24, 2011.