Summary
This 8-K filing by Royal Caribbean Cruises Ltd. (RCL) on March 3, 2009, details a significant financing agreement executed on February 27, 2009. A subsidiary, Celebrity Solstice IV Inc., entered into a definitive credit agreement with KfW IPEX-Bank GmbH for an unsecured term loan of up to the Euro equivalent of $444.0 million. This loan, guaranteed by the parent company, is intended to finance the purchase of the fourth Solstice-class ship, slated for delivery in the third quarter of 2011. The financing terms include a 12-year tenor with semi-annual amortization and a fixed interest rate of 5.82%, with an option to convert to a floating rate under specific conditions. This agreement is crucial for investors as it demonstrates RCL's ability to secure long-term funding for its fleet expansion, even in a challenging economic environment, and provides clarity on the financing structure for a major upcoming asset acquisition.
Key Highlights
- 1RCL subsidiary Celebrity Solstice IV Inc. secured a definitive credit agreement for a term loan.
- 2The unsecured term loan amounts to up to the USD equivalent of €444.0 million.
- 3The loan is guaranteed by the parent company, Royal Caribbean Cruises Ltd.
- 4Proceeds are designated for the purchase of the fourth Solstice-class ship, expected in Q3 2011.
- 5The loan has a 12-year tenor with semi-annual amortization.
- 6A fixed interest rate of 5.82% is specified, with an option to convert to a floating rate.
- 7The agreement was executed on February 27, 2009.