Royal Caribbean Cruises Ltd (RCL) has entered into a $2.2 billion, 364-day secured term loan to enhance its liquidity. RCL also said that can be extended at the company's option for an additional 364 days. The company has borrowed the full amount available under the term loan to further bolster its liquidity.
Including this new financing, the company has over $3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities (net of outstanding commercial paper). In addition, the company has committed financing for all of its new ships on order.
"This is a period of unprecedented disruption for the cruise industry," said Jason Liberty, executive vice president and CFO. "We continue to take decisive actions to protect the company's financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans."
Morgan Stanley, J.P. Morgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners on the secured term loan facility. Morgan Stanley is acting as an Administrative Agent and Collateral Agent on the facility.
Perella Weinberg Partners LP served as financial advisor and Skadden Arps, Slate, Meagher & Flom LLP served as legal advisor to the company in connection with the secured term loan facility.
On Friday, March 13, Royal Caribbean Cruises Ltd., stopped all cruises of its fleet to or from U.S. ports for 30 days, as did other Cruise Lines International Association (CLIA) members. The second largest cruise company expects to return to service on April 11.
For more information, visit https://www.royalcaribbean.com/
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