Summary
Royal Caribbean Cruises Ltd. (RCL) announced on April 18, 2006, the entry into a significant material definitive agreement. Specifically, on April 6, 2006, the Company secured a US$570,000,000 unsecured credit facility with various financial institutions, led by Citibank, N.A. as the Administrative Agent. This substantial loan facility is set to mature in 2013 and carries a current annual interest rate of 3.77%. The primary purpose of this new credit facility is to fund the acquisition of RCL's new cruise vessel, the 'Freedom of the Seas'. This strategic financial move indicates the company's ongoing investment in expanding its fleet and enhancing its capacity to serve the growing cruise market. The unsecured nature of the loan suggests a strong credit profile for RCL at the time.
Key Highlights
- 1RCL entered into a US$570,000,000 unsecured credit agreement on April 6, 2006.
- 2The credit facility matures in 2013.
- 3The current interest rate on the loan is 3.77% per annum.
- 4Proceeds are designated for the purchase of the new cruise vessel 'Freedom of the Seas'.
- 5Citibank, N.A. serves as the Administrative Agent for the credit facility.
- 6The agreement was filed with the SEC on April 18, 2006.