Add to balance / Manage account | User: | Log out |
Prospect News home > News index > List of issuers H > Headlines for Horizon Lines LLC > News item |
Horizon Lines lowers ABL facility, to reduce fees, amend terms
By Tali Rackner
Norfolk, Va., April 29 – Horizon Lines, Inc. and Horizon Lines, LLC reduced the maximum size of its ABL facility via agent Wells Fargo Capital Finance, LLC to $80 million from $100 million, according to an 8-K filing with the Securities and Exchange Commission.
The company’s accounts receivable balances decreased due to the closing of its Puerto Rico operations. The decrease resulted in a reduction in the maximum forecast borrowing base below $80 million.
The smaller facility size is expected to reduce Horizon Lines’ fees on unused ABL facility commitments by about $100,000 per year.
In addition to the lower fee, the amendment relaxes the condition that triggers testing the minimum fixed-charge coverage ratio to a minimum excess availability of $10 million from $12.5 million and the condition that triggers weekly borrowing base reporting to $12 million from $14 million.
The April 22 amendment also reduces the letter of credit sub-limit to $20 million from $30 million.
Horizon Lines is a Charlotte, N.C.-based container shipping company.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.