Houlihan Lokey Advises Celestyal Cruises

Houlihan Lokey is pleased to announce that Louis PLC (CSE:LUI) and Celestyal Cruises Ltd. (Celestyal) have signed an agreement for the recapitalisation of Celestyal through a strategic investment from Searchlight Capital Partners, LP (Searchlight), a leading global private investment firm. The transaction was signed and simultaneously completed on 25 November 2021.

Under the terms of the agreement, Searchlight will provide an initial tranche of €30 million senior debt financing to Celestyal at closing and a €10 million revolving credit facility. Furthermore, the agreement provides for additional funding of up to €30 million, subject to meeting certain conditions, to support the development plans of the company, including its fleet renewal.

Louis Hotels Public Company Ltd. will capitalise €31.75 million loans it had extended to Celestyal, and all Celestyal shares will be sold to a newly incorporated holding company. Upon completion, Louis PLC, through its subsidiary Louis Hotels Public Company Ltd., will acquire 40% of the limited partnership interests in the sole shareholder of such newly incorporated holding company. Searchlight will be the owner of the remaining 60%.

Searchlight’s strategic investment will enable Celestyal to amplify its brand globally, build upon its success to date, and expand its operational footprint whilst growing and renewing its fleet.

Celestyal Cruises is the number one cruise company for travellers to the Greek Islands and East Mediterranean thanks to its regional expertise and exceptional hospitality. The company is wholly owned by Louis Group, one of the leading tourism and leisure groups in Southeast Europe, and is headquartered in Piraeus, Greece.

Searchlight is a global private investment firm with more than $9 billion in assets under management and offices in New York, London, and Toronto. Searchlight seeks to invest in businesses where its long-term capital and strategic support accelerate value creation for all stakeholders.

Louis Group, one of the leading tourism and leisure groups in Southeast Europe, is known for consistent high-quality services, deep market insight, and many years of leading experience. Founded in 1935 by the "father of tourism" in Cyprus, the late Louis Loizou, the company now employs around 4,000 professionals. Applying their experience to a full spectrum of tourism services, Louis Group owns and manages hotels, restaurants, and cruises as well as a range of IATA offices. Predominantly operating in Cyprus and Greece, the Group also has a growing presence worldwide.

This deal represents another successful transaction for Houlihan Lokey in the consumer, food, and retail industry. With 43 transactions announced since January 2021, Houlihan Lokey reinforces its global leadership in the consumer space and marks another transaction in the travel and leisure sector.

Houlihan Lokey acted as the exclusive financial advisor to Celestyal and assisted in negotiating the transaction on its behalf.