Virgin negotiates new funding

2022-08-27T10:32:44+00:00 August 27th, 2022|Finance|

Richard Branson’s Virgin Voyages has received $550 mill in new capital to support its growth.

The funding was led by BlackRock and includes new external financing and additional capital from existing investors, including Bain Capital Private Equity and Virgin Group.

Virgin Voyages has also received additional, continued support from its existing lenders, the company said.

The new funding will enable the cruise company to continue its growth strategy and further strengthen its financial position, as cruise demand continues to regain momentum.

Virgin Voyages was launched in August, 2021 and currently operates two ships, ‘Scarlet Lady’ sailing from the US to the Caribbean, and ‘Valiant Lady’ currently sailing in the Mediterranean.

“We have created an incredible product that both our investors and consumers truly believe in, and this additional capital comes at a time when we’re looking forward to exponential growth that will, in turn, help us achieve what we set out to accomplish,” said Tom McAlpin, Virgin Voyages CEO.

“Virgin Voyages has successfully launched a new brand in the cruise industry and proven its appeal to both the traditional and non-traditional cruiser, allowing the brand to tap into new markets and re-imagine this travel category,” added Ryan Cotton, a Managing Director at Bain Capital.  “The expansion and enthusiastic commitment of the investor group supporting Virgin Voyages is a testament to the attractive fundamentals of this brand and what makes it so special.”

“Despite the unprecedented challenges the cruise sector has faced in the past few years, the industry is exhibiting a powerful rebound. We are excited to invest in Virgin Voyages on behalf of our investors as we see a positive outlook and impressive growth on the horizon for the company,” said Brendan Galloway, BlackRock Global Credit Director.

Virgin Voyages claimed that it had seen exponential growth in bookings in the last six months and this year is set to see a strong return across the industry, as cruising sails back toward pre-pandemic levels.

Goldman Sachs & Co served as lead placement agent to Virgin Voyages.