Seven Seas unit gets $440 million 12-year loan at Libor plus 280 bps

By Angela McDaniels

Tacoma, Wash., Aug. 5 - Seven Seas Cruises S de RL subsidiary Explorer New Build LLC entered into a loan agreement for up to $440 million on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

Credit Agricole CIB, Societe Generale, HSBC Bank plc and KFW IPEX Bank GmbH are the lead arrangers.

The 12-year fully amortizing loan requires semiannual principal and interest payments beginning six months after the drawdown date.

The interest rate is Libor plus 280 basis points. The commitment fee is 110 bps.

Seven Seas and Prestige Cruise Holdings Inc., a parent company of Seven Seas, provided guarantees of the loan.

Borrowings will be used to finance 80% of Seven Seas' ship building contract with Italy's Fincantieri shipyard and to finance the export credit premium. The loan will be secured by the ship, its related earnings and insurances and an equity pledge of Explorer New Build.

Seven Seas Cruises is a Miami-based cruise line.

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