Horizon Line Inc., the second-largest shipping company serving the Hawai'i market, said it 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 operates a fleet of 21 U.S.-flag container ships and five port terminals linking the continental United States with Alaska, Hawai'i, Guam, Micronesia and Puerto Rico.