Hornblower Group Announces Successful Financial Overhaul

Thursday, July 4, 2024

Hornblower Group (“Hornblower” or the “Company”) announced its successful completion of financial restructuring, emerging with new majority ownership, a streamlined portfolio, and enhanced financial flexibility to support long-term growth. This restructuring enables Hornblower to continue delivering world-class experiences to millions of guests and commuters worldwide.

Hornblower offers diverse water and land-based experiences, including daily ferry transportation and dinner and sightseeing cruises to iconic landmarks such as the Statue of Liberty, Alcatraz Island, and Niagara Falls. Serving over 20 million guests annually across more than 100 countries and 50 U.S. cities, Hornblower’s offerings include:

• City Cruises: Public dining and sightseeing cruises in over 20 destinations across the U.S., Canada, and the UK.
• Transportation Services: Ferry services to major attractions like the Statue of Liberty, Alcatraz, and Niagara Falls.
• Walks & Devour: Sightseeing and food tours in Europe, Canada, and the U.S.
• Ferry & Transportation: Commuter and cargo transportation across inland and coastal waterways in the Northeast, including NYC and Puerto Rico.
• Anchor Operating System: Subsidiary providing operating and ticketing systems for maritime and tourism industries.

Kevin Rabbitt, Hornblower Chief Executive Officer, stated, “Today marks a new beginning for Hornblower. Our expert team, strong government and business partnerships, and new owners supporting our strategic priorities, position us well for the future. I am excited about what we will deliver to our guests and commuters worldwide.”

The restructuring led to funds managed by Strategic Value Partners, LLC (SVP) acquiring majority ownership, with Crestview Partners retaining a significant minority position. Hornblower reduced its total debt by approximately $720 million (over 70%) and increased liquidity, allowing continued investment in growth and expansion.

David Geenberg, Co-Head of the North American Investment Team at SVP, expressed enthusiasm about Hornblower’s new era of growth, emphasizing the company’s strong foundation, dedicated crew, and commitment to safety and service excellence. Brian Cassidy, President of Crestview, highlighted Hornblower’s strengthened balance sheet and readiness Brian Cassidy to meet the travel and transportation needs of guests and commuters, looking forward to continued partnership.

Advisors:

• Hornblower: Guggenheim Securities, LLC (investment banker), Alvarez & Marsal North America, LLC (financial advisor), Paul, Weiss, Rifkind, Wharton & Garrison LLP (legal counsel), Porter Hedges LLP (co-counsel).
• SVP and Hornblower lenders: Perella Weinberg Partners LP (investment banker), FTI Consulting, Inc. (financial advisor), Milbank LLP (legal advisor).
• Crestview: PJT Partners (financial advisor), Davis Polk & Wardwell LLP (legal counsel), Vinson & Elkins LLP (co-counsel).