Morgan Stanley looking to sell $3bn loan for Royal Caribbean deal - report

Investing.com -- Morgan Stanley has asked other banks to purchase portions of a $3 billion loan that finances Royal Caribbean Cruises' acquisition of a 50% stake in Sandals Resort International, Bloomberg reported Wednesday.

The 364-day loan carries an interest rate of 1.125 percentage points above the Secured Overnight Financing Rate. Morgan Stanley originally provided the loan, which is expected to be replaced with longer-term debt such as bonds at a later date.

The financing represents one of several recent short-term buyout loans from Morgan Stanley as the investment bank takes advantage of increased merger and acquisition activity.

This week, Morgan Stanley was listed alongside Société Générale as a provider of a €22 billion ($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.

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 also supplied a £2.4 billion ($3.17 billion) bridge financing commitment to Informa for its planned acquisition of Clarion, announced on Tuesday. That loan has a one-year term with two six-month extension options available.

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