Summary
Royal Caribbean Cruises Ltd. (RCL) filed an 8-K on December 2, 2009, reporting a material definitive agreement. The company's subsidiary, Celebrity Eclipse Inc., entered into a definitive credit agreement on November 26, 2009, with KfW IPEX-Bank GmbH. This agreement provides an unsecured term loan of up to the US Dollar equivalent of Euro 420.0 million, guaranteed by the parent company upon funding. The loan has a 12-year tenor with semi-annual amortization and a floating interest rate based on LIBOR plus an applicable margin. The proceeds are earmarked for the purchase of the new ship, Celebrity Eclipse, expected to be delivered in the second quarter of 2010. This financing arrangement is crucial for the company to acquire a significant new asset amidst the prevailing economic conditions of late 2009.
Key Highlights
- 1RCL subsidiary Celebrity Eclipse Inc. secured a Euro 420 million unsecured term loan.
- 2The loan agreement was finalized on November 26, 2009, with KfW IPEX-Bank GmbH.
- 3The parent company, Royal Caribbean Cruises Ltd., will guarantee the loan upon funding.
- 4The loan features a 12-year maturity and semi-annual amortization.
- 5Interest will be based on a floating rate (LIBOR plus a margin).
- 6Proceeds are designated for the acquisition of the new cruise ship, Celebrity Eclipse.
- 7The Celebrity Eclipse is scheduled for delivery in Q2 2010.