Virgin Voyages has received a vote of confidence in the form of US$550 million in new capital to support its growth.
The funding was managed by BlackRock and includes new external financing and additional capital from existing investors including Bain Capital Private Equity and Virgin Group.
The cruise line that describes itself as "a sanctuary at sea for the 18+ traveller," says the infusion of funds, along with additional support from existing lenders, will enable it to continue its growth strategy and strengthen its financial position as cruise demand continues to recover.
Virgin Voyages was on the drawing board as early as 2011, but its planned debut on April 1, 2020 was scuttled by the pandemic. The first sailing with paying guests was delayed for well over a year. The line officially launched in August 2021 and currently operates two ships, Scarlet Lady travelling from the U.S. 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, CEO of Virgin Voyages.
"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, Director in BlackRock Global Credit.
After its unfortunate start, Virgin Voyages says it has 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.
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