Horizon Lines Making Voluntary $12.5 Million Debt Payment
09.19.2008
CHARLOTTE, NC, September 19, 2008 – Horizon Lines, Inc. (NYSE: HRZ), today is making a voluntary payment of $12.5 million on its revolving credit facility.
The debt payment follows a similar voluntary payment of $10 million made during the second quarter, and reduces borrowings on its $250 million revolving credit facility to $157.5 million.
“We continued to generate solid cash flow in our third quarter, which ends this coming Sunday, and we have elected to use some of the cash to continue to pay down debt,” said Michael Avara, Senior Vice President and Chief Financial Officer. “Our company is ending the quarter with strong corporate liquidity and continues to operate very comfortably in compliance with our credit facility financial covenants. We currently plan to continue to pay down debt in the fourth quarter.”
Horizon Lines will report third-quarter results on October 24, 2008.
About Horizon Lines
Horizon Lines, Inc. is the nation's leading domestic ocean shipping and integrated logistics company comprised of two primary operating subsidiaries. Horizon Lines, LLC operates 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. Horizon Logistics, LLC offers customized logistics solutions to shippers from a suite of transportation and distribution management services designed by Aero Logistics, information technology developed by Horizon Services Group and intermodal trucking and warehousing services provided by Sea-Logix. Horizon Lines, Inc. is based in Charlotte, NC, and trades on the New York Stock Exchange under the ticker symbol HRZ.
Forward Looking Statements
The information contained in this press release should be read in conjunction with our filings made with the Securities and Exchange Commission. This press release contains “forward-looking statements” within the meaning of the federal securities laws. These forward-looking statements are intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. Forward-looking statements are those that do not relate solely to historical fact. They include, but are not limited to, any statement that may predict, forecast, indicate or imply future results, performance, achievements or events. Words such as, but not limited to, “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “target,” “projects,” “likely,” “will,” “would,” “could,” and similar expressions or phrases identify forward-looking statements.
All forward-looking statements involve risk and uncertainties. In light of these risks and uncertainties, expected results or other anticipated events or circumstances discussed in this press release might not occur. We undertake no obligation, and specifically decline any obligation, to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. See the section entitled “Risk Factors” in our Form 10-K filed with the SEC on February 6, 2008, and in subsequent Form 10-Qs, for a more complete discussion of these risks and uncertainties and for other risks and uncertainties. Those factors and the other risk factors described therein are not necessarily all of the important factors that could cause actual results or developments to differ materially from those expressed in any of our forward-looking statements. Other unknown or unpredictable factors also could harm our results. Consequently, there can be no assurance that actual results or developments anticipated by us will be realized or, even if substantially realized, that they will have the expected consequences.
For information contact:
Jim Storey
Director of Investor Relations and Corporate Communications
704.973.7101
jstorey@horizonlines.com