Hornblower said as part of its private disclosure earlier this week to outline terms of a
new $90 million term loan that it has the capacity under its credit agreement to transfer to an unrestricted subsidiary certain of its Niagara Falls operations assets that will be used to secure the facility, according to sources. In the disclosure, the company also indicated that sponsor Crestview Partners injected $30 million of equity in August, the sources said. Hornblower in August
said that Crestview was contemplating an equity injection as an alternative to a pulled amendment aimed at deferring cash interest, as reported.
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Caspian Capital will anchor the term loan, funding 50.1% and backstopping the remaining 49.9%, which will be open to participation by lenders to the $645 million L+450 bps term loan B due May 2025, the sources said. The loan will pay 11% and mature in 2023, as reported.
An ad hoc group of majority term loan lenders has been working with Shearman & Sterling as legal advisor and is evaluating the transaction, the sources said. An ad hoc group of minority term loan lenders is working with Stroock as legal advisor. Caspian is not part of either group, the sources noted.
The San Francisco-based cruise and ferry operator is working with Paul Weiss as legal advisor and Guggenheim Securities as financial advisor, as reported.
Hornblower, Crestview Partners, Caspian Capital, Shearman & Sterling and Stroock did not immediately respond to requests for comment.
--Harvard Zhang