Morgan Stanley Seeks Bank Partners for Royal Caribbean Resort Financing
Morgan Stanley asked other banks on Wednesday to purchase portions of a $3 billion loan financing Royal Caribbean Cruises’ acquisition of a 50% stake in Sandals Resort International, Investing.com reported. The transaction highlights a broader wave of short-term acquisition financing led by major investment banks amid surging merger and acquisition activity across global markets.
Morgan Stanley Funds Short-Term Loan for Corporate Takeover
The 364-day loan carries an interest rate of 1.125 percentage points above the Secured Overnight Financing Rate, according to financial reports. Morgan Stanley originally funded the entire package and intends to replace the short-term debt with longer-term financing instruments, including corporate bonds, at a later date. This arrangement mirrors several recent short-term buyout transactions where the investment bank has stepped in to provide immediate capital for corporate takeovers.
Active Deal Pipeline Across Global Sectors
Beyond the Sandals Resort transaction, Morgan Stanley featured prominently in several major corporate acquisitions announced during the same week. The bank joined Société Générale as a provider of a €22 billion ($24.6 billion) bridge loan backing Schneider Electric SE in its acquisition of PTC Inc., Yahoo Finance reported. Morgan Stanley also supplied a $4.5 billion short-term loan supporting C.H. Robinson Worldwide’s proposed $5.8 billion purchase of RXO.
Additional advisory and financing roles materialized Wednesday, when Morgan Stanley and CIBC emerged as providers of acquisition financing for Wittington Investments following its agreement to buy UK drugstore chain Boots for $8.9 billion. Morgan Stanley issued a £2.4 billion ($3.17 billion) bridge financing commitment to Informa for its planned acquisition of Clarion, a deal officially announced on Tuesday with a one-year term and two six-month extension options.
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