Oceania complete their purchase of their 3 ships

**Ally** · 11-14-2006, 05:22 PM

Oceania Cruises completed a $400m bank debt offering and used the proceeds to buy its three ships, previously leased from Cruiseinvest LLC, for a total cost of $375m.

The credit facilities consist of a $300m six-year loan, a $75m seven-year loan and a $25m five-year revolving credit facility. UBS Securities and Lehman Brothers acted as financial advisers and underwrote the credit facilities with a syndicate of North American and European financial institutions.

Oceania will now assume full ownership and management responsibilities for the 684-passenger Regatta, Insignia and Nautica. The company said no changes will be made to on-board operations. Also, V.Ships Leisure will continue as marine and technical managers for the fleet, and ICS, a subsidiary of Miami-based Apollo Ship Chandlers, will continue to provide hotel services.

Since its inception in 2002, Oceania has grown from one ship and fewer than 50 shoreside employees to a 2,052-berth fleet with 165 shoreside staff and more than 2,000 crew. The company said that even during its rapid capacity expansion, it managed to boost per passenger yields by 41% and to consistently maintain occupancy levels close to capacity. Oceania added that more than 72% of the available capacity for 2007 and 30% for 2008 has been booked as of this month.

‘To reach this milestone in such a short period of time, from start-up to owning our vessels in less than four years, is a momentous occasion and a tremendous achievement for the entire team at Oceania Cruises,’ said Frank Del Rio, president and ceo.

By acquiring the ships, the company expects to reduce overall capital expenditures and operational costs, which will positively impact EBITDA going forward, Del Rio added. He said the company is positioned to enter its next growth phase and ‘we can now focus on fleet expansion.’

(Oceania)