Summary
Royal Caribbean Cruises Ltd. (RCL) announced on July 11, 2013, a significant financing agreement for its third Oasis-class ship, scheduled for delivery in the second quarter of 2016. The company has secured an unsecured term loan of up to approximately €892 million, fully guaranteed by COFACE, the export credit agency of France. This structure provides substantial credit support for the financing. Investors should note the favorable financing terms, offering a choice between a fixed interest rate of 2.60% or a floating rate linked to EURIBOR plus 1.15%. The loan will amortize semi-annually and mature twelve years after the ship's delivery. This agreement demonstrates RCL's ability to secure substantial capital for fleet expansion on attractive terms, mitigating financial risk through the export credit agency guarantee.
Key Highlights
- 1RCL secured a credit agreement for its third Oasis-class ship, due in Q2 2016.
- 2The financing includes an unsecured term loan of up to approximately €892 million.
- 3The loan is fully guaranteed by COFACE, the export credit agency of France, reducing lender risk.
- 4Borrowers can elect a fixed interest rate of 2.60% or a floating rate (EURIBOR + 1.15%).
- 5The loan will amortize semi-annually and mature twelve years after ship delivery.
- 6The agreement was entered into on July 9, 2013, and filed on July 11, 2013.