Summary
Royal Caribbean Cruises Ltd. (RCL) announced on December 13, 2019, the entry into a significant credit agreement for the financing of its sixth Oasis-class ship, scheduled for delivery in Q4 2023. This agreement provides an unsecured term loan, fully guaranteed by BpiFrance Assurance Export, the French export credit agency, covering 80% of the vessel's purchase price plus associated premiums. The loan, denominated in USD, will amortize semi-annually and mature twelve years after the ship's delivery. A key attractive feature for investors is the fixed interest rate of 3.00%, inclusive of margin. The financing structure appears designed to support the company's fleet expansion while managing capital costs effectively. The filing also notes customary events of default and prepayment provisions, as well as existing banking relationships with some of the participating lenders.
Key Highlights
- 1RCL has secured financing for its sixth Oasis-class ship, expected in Q4 2023.
- 2The financing is an unsecured term loan with a 100% guarantee from BpiFrance Assurance Export (French export credit agency).
- 3The loan will cover up to 80% of the vessel purchase price plus 100% of the premium payable to BpiFAE.
- 4The loan will be denominated in US dollars.
- 5The loan will amortize semi-annually and mature twelve years after the ship's delivery.
- 6A competitive fixed interest rate of 3.00% (inclusive of margin) has been secured.
- 7The credit agreement includes standard covenants, events of default, and prepayment clauses.