Horizon Lines said it pleaded guilty to violating antitrust laws and agreed to pay a fine of $45 million over a 5-year period. The company said it was in discussions with some of its lenders to waive a default that will arise from the plea agreement.
"We are engaged in constructive discussions with lenders regarding credit agreement and covenant relief," Chief Financial Officer Michael Avara said on a conference call with analysts.
Under the existing agreement, if arrangements are not made for the company's convertible notes to be refinanced, then the maturity date will be advanced to February from August.
Horizon Lines has total long-term debt of $516.3 million with an average interest rate of about 4.48 percent.
For October-December, it lost 33 cents a share, excluding items. Sales rose 4 percent to $298.8 million, said the company, which has 20 U.S.-flag containerships and operates five port terminals linking the continental United States with Alaska, Hawaii, Guam, Micronesia and Puerto Rico.
"We anticipate modest growth in 2011 compared to 2010. This will be driven by the local economies as will as the U.S. and global economy," Avara said. (Reuters)
