iCON Infrastructure Partners VI to Back Royal Caribbean Group’s Port Infrastructure Plan
Posted on 12/19/2022
Royal Caribbean Group (NYSE: RCL) announced it has entered into a new partnership with iCON Infrastructure Partners VI, L.P., a fund advised by iCON Infrastructure LLP to develop strategic cruise port infrastructure in support of Royal Caribbean Group’s growth plans. Access to destinations continues to be of strategic importance to Royal Caribbean Group’s core business. The proposed partnership will own, develop, and manage cruise terminal facilities and infrastructure in home ports and key ports of call. The partnership, which will be owned 90% by iCON VI and 10% by Royal Caribbean Group, will be managed by an independent management team with strategic support from Royal Caribbean Group. Both parties have committed to provide funding for future expansion in accordance with their percentage interest.
The new partnership will initially include PortMiami Terminal A, and several development projects in Italy, Spain, and the U.S. Virgin Islands. The partnership will also pursue additional port infrastructure developments based on the pipeline of projects as part of Royal Caribbean Group’s destination development strategy. At closing (anticipated for the first quarter of 2023), Royal Caribbean Group expects to receive net cash proceeds of approximately $210 million. The partnership is expected to be accretive to earnings, ROIC, and leverage metrics and will allow Royal Caribbean Group to continue investing in the development of strategic infrastructure while supporting the goals of its Trifecta program.
Advisors
BofA Securities is serving as exclusive financial advisor to Royal Caribbean Group.
