Hornblower Group today announced that it has entered into an agreement with its investors that will strengthen the company’s financial foundation and position Hornblower for a successful future, according to a statement.

Under the terms of the agreement, funds managed by Strategic Value Partners, LLC and its affiliates, a global alternative investment firm, will acquire majority ownership of Hornblower and provide a significant equity investment in the business.

Crestview Partners will retain a significant minority position in Hornblower and become the sole owner of Journey Beyond, a stand-alone operating unit of Hornblower and the leading experiential travel provider in Australia.

The agreement also provides for Hornblower to receive $121 million in new-money financing from SVP-managed funds and Crestview, and the Company’s total debt will be reduced by approximately $720 million.

In connection with the agreement, according to a press release, Hornblower’s overnight cruising business American Queen Voyages will be sold or, if a sale cannot be achieved, its operations will be wound down. Hornblower is taking this action because of the underperformance of AQV, which has not rebounded from the pandemic, the company said in a statement.