A&K Travel Group refinances with $500m Citi loan

This enables the company to restructure and consolidate legacy financing.

A&K said the arrangement gives a 'clear runway for expansion over the coming years,' resulting in new destination management companies and assets such as camps, lodges and riverboats in existing and new markets. 

New DMCs are planned in Mexico and Indonesia this year, in addition to A&K's 56 offices in 34 countries. New products have been created across the globe, from land-based itineraries to private-jet journeys on the A&K jet. There are expedition cruises on all seven continents, with two new cruises launched this year.

New riverboat

A new riverboat is scheduled to enter service in Peru next year, joining the company’s fleet of four riverboats in Egypt, and three expedition yachts in the Galápagos Islands under the Ecoventura brand. A&K also has 12 camps and lodges in Africa, with a new one set to open next year in Kenya’s Amboseli.

The company is investing in back-office systems and creating a digital infrastructure centered on a new Abercrombie & Kent global website, centralized booking system and travel advisor portal, all supported by a bespoke CRM platform.

30-year relationship

'This deal cements another milestone in the over 30-year relationship between my family and Citi,' A&K Travel Group Executive Chairman Manfredi Lefebvre d'Ovidio said. 'It is a partnership that has helped build businesses and generate growth all around the world. I am excited about this next chapter together and the possibilities it unlocks for Abercrombie & Kent.'

CEO Cristina Levis praised the finance team headed by Andrew Burrett for a 'tremendous job in negotiating and securing this transaction in record time,' adding: 'Once again Citi has shown to us their support reconfirming that they believe in our vision and in the enormous growth potential of Abercrombie & Kent, Crystal and Cox and Kings.’

Step change

For his part, CFO Burrett called the transaction a 'step change for the Abercrombie & Kent Travel Group and our vision of “One A&K," creating a clear runway for us to further accelerate our growth path and expanding into more locations where we can continue to delight our guests.’

The company was advised by King & Spalding, while Citi was advised by Norton Rose Fulbright.