Morgan Stanley Seeks Buyers for $3 Billion Royal Caribbean Loan

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Summary · why it matters

Morgan Stanley has asked other banks to purchase portions of a $3 billion loan financing Royal Caribbean Cruises' acquisition of a 50% stake in Sandals Resort International, according to Bloomberg. The 364-day loan carries an interest rate of 1.125 percentage points above the Secured Overnight Financing Rate, and Morgan Stanley originally provided the financing, which is expected to be replaced later with longer-term debt such as bonds. The deal is one of several recent short-term buyout loans from Morgan Stanley as the investment bank capitalizes on increased merger and acquisition activity. This week, Morgan Stanley was listed alongside Société Générale as a provider of a €22 billion, or $24.6 billion, bridge loan to Schneider Electric SE for its acquisition of PTC Inc. The bank also supplied a $4.5 billion short-term loan supporting CH Robinson's proposed $5.8 billion purchase of RXO, and on Wednesday Morgan Stanley and CIBC were named as providers of acquisition financing for Wittington Investments, which agreed to buy UK drugstore chain Boots for $8.9 billion. Morgan Stanley additionally supplied a £2.4 billion, or $3.17 billion, bridge financing commitment to Informa for its planned acquisition of Clarion, announced on Tuesday, with a one-year term and two six-month extension options available.

Impact on assets 10

Financials▲
Morgan Stanley
MS
▲ PositiveCapitalrelevance

Morgan Stanley is arranging and syndicating multiple acquisition bridge loans, capitalizing on increased M&A activity.

Artificial Intelligence▲
Schneider Electric S.E.
SU
± MixedCapitalrelevance

Schneider Electric is acquiring PTC Inc. with a €22 billion bridge loan provided by Morgan Stanley and Société Générale.

Industrials▲
Consumer Discretionary▲
Royal Caribbean Cruises Ltd
RCL
▲ PositiveCapitalrelevance

Morgan Stanley is seeking buyers for a $3 billion loan financing Royal Caribbean's acquisition of a 50% stake in Sandals Resort International.

Cloud & Digital Infrastructure▲
PTC Inc
PTC
± MixedCapitalrelevance

PTC is the target of Schneider Electric's acquisition, which Morgan Stanley is helping finance with a bridge loan.

Communication Services▲

Off-coverage companies 4

Boots (The Boots Group)i
Private± Mixedrelevance

Clarion Eventsi
Private± Mixedrelevance

Sandals Resorts Internationali
Private± Mixedrelevance

Wittington Investmentsi
Private± Mixedrelevance