Searchlight invests in Celestyal Cruises

Harriet Matthews
29 November 2021

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Searchlight Capital Partners has invested in Greece-headquartered cruise line company Celestyal Cruises.

The deal is structured as a recapitalisation alongside the company's existing owners. It will see Searchlight make an investment into a new holding company called Celestyal Holdings.

According to press coverage, Searchlight is to acquire a majority stake in the company and will provide EUR 70m in fresh capital, including an initial tranche of EUR 30m and a revolving credit facility of EUR 10m. The deal will see Celestyal recapitalise a EUR 31.75m loan from Louis Hotels, according to the same report.

Existing shareholder Louis Group, a tourism and leisure group, will continue as an investor in the new holding company.

Cruise operators and international travel providers have suffered over the course of the coronavirus pandemic and its travel restrictions, with fresh doubt cast over the sector due to the emergence of the new omicron coronavirus variant. Celestyal was on a growth trajectory prior to the pandemic, the company said in a statement.

Searchlight's previous travel and leisure sector investments include VC-backed GetYourGuide, a Berlin-headquartered travel agency and online marketplace for tour guides.

Searchlight is investing via Searchlight Opportunities Fund, which held a final close in April 2018 on USD 386m. The vehicle generally makes passive investments, including subordinated, unsecured and convertible debt, as well as PIK notes and preferred and structured equity.

The GP registered its second Opportunities Fund in June 2021, according to a regulatory filing.

Company
Founded in 2014 and headquartered in Piraeus, Celestyal operates cruises around the Greek ssland and the east Mediterranean via two vessels.

People
Searchlight Capital Partners – Ralf Ackermann (partner).
Celestyal Cruises – Chris Theophilides (CEO).
Louis Group – Costakis Loizou (executive chairman).

Advisers
Vendor – Houlihan Lokey (corporate finance); Hill Dickinson (legal); Chryses Demetriades (legal); PwC (tax).
Debt – Willkie Farr & Gallagher (legal); Alvares & Marsal (corporate finance); KPMG (tax); Lockton (insurance due diligence); Renaissance Shipbroking (shipbroking).