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Hornblower gets interim access to $585 million DIP financing package
By Sarah Lizee
Olympia, Wash., Feb. 22 – Hornblower Cruises and Events, Inc. gained interim access to a $585 million debtor-in-possession financing package on Thursday, according to an order filed with the U.S. Bankruptcy Court for the Southern District of Texas.
The financing consists of a $300 million senior facility that will refinance prepetition super-priority loans and a further commitment to provide a new $50 million senior secured first-lien revolver at emergence, provided by Deutsche Bank AG New York Branch; and a $285 million junior facility, which consists of up to $121 million in loans to provide incremental liquidity to fund the cases and $164 million to refinance previously-funded emergency prepetition loans, provided by prepetition lenders.
The proceeds of the senior DIP facility will be used to refinance all amounts owed under a prepetition super-priority facility and related fees.
The senior loan bears interest at SOFR plus 650 basis points, increased to 700 bps if a PIK election has been made, provided that 350 bps will be payable in kind on each interest payment date unless timely elected to be paid in cash.
The junior loan bears interest at SOFR plus 900 bps.
The senior loan carries a 1.5% exit premium and a 1% extension fee, while the junior loan has a 4% closing fee, a 1% delayed-draw term loan commitment fee and a 4% exit premium.
The company now has access to the full amount of the senior loan and $224 million of the junior loan.
GLAS Trust Co. LLC is the DIP agent for both facilities.
Hornblower is a San Francisco-based cruise and event company. The Chapter 11 case number is 24-90087.
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