Summary
Royal Caribbean Cruises Ltd. (RCL) has announced a significant financing agreement for a new generation cruise ship, scheduled for delivery in the third quarter of 2014. This filing details a credit agreement entered into on June 8, 2011, which provides an unsecured term loan facility of up to approximately €595 million. The loan is backed by a substantial 95% guarantee from Euler Hermes Kreditversicherungs AG (Hermes), the German export credit agency, indicating strong support and reduced risk for the financing. This financing is crucial for the development of RCL's next-generation fleet, underscoring the company's commitment to future growth and fleet modernization. Investors should note the favorable fixed interest rate of 4.76% and the twelve-year amortization period following ship delivery. A key condition for full funding is the syndication of 50% of the loan facility, a standard practice to distribute risk and involve other financial institutions.
Key Highlights
- 1Entered into a credit agreement for financing a new generation Royal Caribbean International cruise ship.
- 2Secured an unsecured term loan facility of up to approximately €595 million.
- 3The loan is guaranteed by Euler Hermes Kreditversicherungs AG (Hermes), covering 95% of the financing.
- 4The new ship is scheduled for delivery in the third quarter of 2014.
- 5The loan features a fixed interest rate of 4.76% and a maturity of twelve years post-delivery.
- 6Funding is contingent on syndicating 50% of the loan facility.
- 7KfW IPEX-Bank GmbH is acting as the lead arranger and a lender in the transaction.