8-KMaterial AgreementsFinancial EventsExhibits & Filings

ROYAL CARIBBEAN CRUISES LTD 8-K Report, Material Agreement (Feb 5, 2015)

Filed February 5, 2015For Securities:RCL

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.

Frequently Asked Questions

The financing agreement makes available an unsecured term loan in an amount up to the US Dollar equivalent corresponding to approximately €931 million.

COFACE, the official export credit agency of France, has agreed to guarantee 100% of the financing. This significantly de-risks the loan for Royal Caribbean Cruises Ltd. and likely secured more favorable terms.

The ship is scheduled for delivery in the second quarter of 2018. The loan will amortize semi-annually starting after the ship's acceptance and delivery.

Royal Caribbean Cruises Ltd. has the option to choose between a fixed interest rate of 3.72% (inclusive of the applicable margin) or a floating rate equal to LIBOR plus 1.10%.