Summary
Royal Caribbean Cruises Ltd. (RCL) has announced a significant financing agreement for its fourth Oasis-class ship, scheduled for delivery in the second quarter of 2018. This agreement provides access to an unsecured term loan of up to approximately €931 million, fully guaranteed by COFACE, the French export credit agency. This move secures crucial funding for a major capital expenditure and indicates confidence in the company's future fleet expansion. The financing terms offer flexibility with a choice between a fixed interest rate of 3.72% or a floating rate tied to LIBOR plus 1.10%. The loan will amortize semi-annually over twelve years post-delivery. The unsecured nature of the loan, backed by a strong export credit agency, suggests favorable lending terms for RCL and a de-risking of this significant investment for the company.
Key Highlights
- 1Secured financing of up to approximately €931 million for the fourth Oasis-class ship.
- 2Financing is an unsecured term loan guaranteed 100% by COFACE, the French export credit agency.
- 3Ship delivery is scheduled for the second quarter of 2018.
- 4Loan will amortize semi-annually and mature twelve years after delivery.
- 5Interest rate options include a fixed rate of 3.72% or LIBOR + 1.10%.
- 6Financing agreement includes standard covenants and events of default.