Horizon Offshore extends loans, still working on refinancing, recapitalization

New York, Jan. 21 - Horizon Offshore, Inc. said it extended the maturity date of its two revolving credit facilities with agent Southwest Bank of Texas, NA.

The facilities will now mature on Feb. 11.

Horizon Offshore prepaid $1.3 million on the domestic facility and will secure the remaining $5 million outstanding with $2.5 million of cash. Remaining amounts outstanding under this loan will be repaid with any domestic receivables collections over $5.5 million.

All future collections on foreign receivables will pay down the $12.7 million outstanding under the EXIM guaranteed facility.

Horizon Offshore, a Houston-based provider of marine construction services, said it is continuing to work with a prospective lender to refinance all the outstanding debt under its Southwest Bank revolving credit facilities and its revolver and term loan with The CIT Group/Equipment Financing, Inc. that mature later this year.

Horizon intends to obtain a new term loan and new revolver.

The company also said it is continuing to work with its subordinated note holders to implement the proposed refinancing.

Once completed, Horizon will then proceed with its previously announced equity recapitalization through equity offerings and/or consensual debt for equity exchanges with its subordinated note holders.

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