Summary
Royal Caribbean Cruises Ltd. (RCL) announced on March 27, 2003, that it has successfully executed a new $500 million unsecured revolving credit facility. This facility replaces the company's existing $1 billion credit facility, which was set to expire in June 2003. The new credit facility has a five-year term and bears interest at LIBOR plus 1.75%. It is intended for general corporate purposes. The company noted that while market conditions were challenging due to the conflict in Iraq, they are satisfied with the size and structure of the new facility. This credit line, combined with other financial resources, is expected to provide sufficient liquidity for the delivery of the remaining three ships in their fleet expansion program.
Key Highlights
- 1RCL secured a new $500 million unsecured revolving credit facility.
- 2The new facility replaces an expiring $1 billion credit facility.
- 3The credit facility has a five-year term.
- 4Interest rate is set at LIBOR plus 1.75%, subject to adjustments.
- 5The facility is for general corporate purposes.
- 6The company expressed satisfaction with the facility despite challenging market conditions.
- 7The facility will help fund the delivery of new ships in the fleet expansion program.