Summary
Royal Caribbean Cruises Ltd. (RCL) announced through a Form 8-K filing dated April 21, 2009, that its subsidiary, Celebrity Equinox Inc., entered into a material definitive agreement on April 15, 2009. This agreement is a credit facility with KfW IPEX-Bank GmbH, acting as agent and lender. The facility provides for an unsecured term loan of up to the US Dollar equivalent of EUR 412.0 million. The proceeds are intended to finance the purchase of the new cruise ship, Celebrity Equinox, scheduled for delivery in the third quarter of 2009. This loan features a 12-year tenor with semi-annual amortization and a floating interest rate tied to LIBOR plus a specified margin. The Company will guarantee the loan.
Key Highlights
- 1RCL subsidiary Celebrity Equinox Inc. secured a new EUR 412.0 million unsecured term loan facility.
- 2The loan agreement was finalized on April 15, 2009, with KfW IPEX-Bank GmbH.
- 3Loan proceeds will fund the acquisition of the new cruise ship, Celebrity Equinox.
- 4The Celebrity Equinox is expected to be delivered in the third quarter of 2009.
- 5The loan has a 12-year maturity with semi-annual amortization.
- 6Interest on the loan will be at a floating rate (LIBOR plus applicable margin).
- 7Royal Caribbean Cruises Ltd. will provide a corporate guarantee for the loan.