8-KMaterial Agreements

ROYAL CARIBBEAN CRUISES LTD 8-K Report, Material Agreement (Dec 22, 2023)

Filed December 22, 2023For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) has announced a significant financing agreement for its upcoming fifth Edge-class ship, Celebrity Xcel, slated for delivery in Q4 2025. This definitive agreement involves a US dollar-denominated term loan, 100% guaranteed by Bpifrance Assurance Export, the French export credit agency. This financing structure provides substantial support for the capital-intensive nature of new vessel construction, reducing direct financial burden on RCL at the time of delivery and offering a long-term repayment schedule.

Key Highlights

  • 1RCL entered into a material definitive agreement for the financing of the newbuild ship 'Celebrity Xcel'.
  • 2Celebrity Xcel is the fifth Edge-class ship for Celebrity Cruises and is scheduled for delivery in Q4 2025.
  • 3The financing is a US dollar-denominated term loan, fully guaranteed by Bpifrance Assurance Export, the official export credit agency of France.
  • 4The loan will be available upon acceptance and delivery of the ship.
  • 5The loan will amortize semi-annually and mature twelve years after delivery.
  • 6Interest is expected to accrue at a floating rate of Term SOFR plus 1.45%.
  • 7The agreement includes customary events of default and prepayment clauses.

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