01—Abstract
Summary
Summary of the 8-K filed December 22, 2023. Cited figures are marked; the original filing is the authoritative source.
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%a 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.
02—Key points
Key Highlights
- RCL entered into a material definitive agreement for the financing of the newbuild ship 'Celebrity Xcel'.
- Celebrity Xcel is the fifth Edge-class ship for Celebrity Cruises and is scheduled for delivery in Q4 2025.
- The financing is a US dollar-denominated term loan, fully guaranteed by Bpifrance Assurance Export, the official export credit agency of France.
- The loan will be available upon acceptance and delivery of the ship.
- The loan will amortize semi-annually and mature twelve years after delivery.
- Interest is expected to accrue at a floating rate of Term SOFR plus 1.45%.
- The agreement includes customary events of default and prepayment clauses.
03—Questions
Frequently Asked Questions
What is the purpose of this 8-K filing?
This filing announces a material definitive agreement entered into by Royal Caribbean Cruises Ltd. for the financing of its new ship, Celebrity Xcel.
What is Celebrity Xcel and when will it be delivered?
Celebrity Xcel is the fifth Edge-class ship for Celebrity Cruises and is scheduled for delivery in the fourth quarter of 2025.
How is the new ship being financed?
The ship is being financed through a US dollar-denominated term loan, which is 100% guaranteed by Bpifrance Assurance Export, the official export credit agency of France. The loan will be made available upon the ship's delivery.
What are the key terms of the loan agreement?
The loan will amortize semi-annually and mature twelve years after delivery. The interest rate is expected to be a floating rate of Term SOFR plus 1.45%. The agreement also contains standard clauses for defaults and prepayments.
04—Continue