Hornblower gets final approval of $585 million DIP package

By Sarah Lizee

Olympia, Wash., March 25 – Hornblower Cruises and Events, Inc. gained final approval of a $585 million debtor-in-possession financing package on Monday, 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.

GLAS Trust Co. LLC is the DIP agent for both facilities.

Hornblower is a San Francisco-based cruise and event company. The company filed bankruptcy on Feb. 21 under Chapter 11 case number 24-90087.

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