"We are very pleased with the results of our refinancing," said David W. Sharp, Horizon president and CEO. "It paves the way for us to continue the successful execution of our business plan in light of the substantially improved market conditions we see in the Gulf of Mexico and many of our international operating areas. The new term loan facility eliminates our significant amount of short-term debt and will significantly reduce our interest expense."
Horizon and its subsidiaries provide marine construction services for the offshore oil and gas and other energy-related industries. The company's fleet is used to perform a wide range of marine construction activities, including installation and repair of marine pipelines to transport oil and gas and other subsea production systems, and the installation and abandonment of production platforms.
"We believe that our improved capital structure and strong operating performance position us to take advantage of the opportunities we see in our business," said Sharp.
The refinancing agreement has a five-year term and bears interest at the London Interbank Office Rate (LIBOR) plus 4.5 percent per year. It is payable in monthly installments of $0.9 million, plus interest, for the first 24 months beginning March 31, 2006, and $0.6 million, plus interest, for the next 35 months, with the remaining principal and unpaid interest due at maturity in March 2011.
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