Horizon Lines Inc., the owner of U.S.-flagged container vessels, said lenders cut the size of its credit facility and raised the interest rate in exchange for relaxing some terms.

Lenders led by Wachovia Bank NA cut the credit line to $225 million from $250 million, according Horizon, one of the shipping companies that serves Hawaii. Additionally, a $150 million credit facility will be eliminated, the Charlotte, North Carolina-based company said in a filing with the U.S. Securities and Exchange Commission.
Horizon Lines also said it settled a class-action lawsuit filed by customers who alleged price fixing in the company’s Puerto Rico shipping service. The company agreed today to pay $20 million and to freeze some base rates.