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ROYAL CARIBBEAN CRUISES LTD 8-K Report, Material Agreement (Apr 1, 2025)

Filed April 1, 2025For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) has announced a significant financing agreement for its seventh Oasis-class ship, scheduled for delivery in the second quarter of 2028. This 8-K filing details a new credit agreement that will provide a US dollar-denominated term loan, fully guaranteed by BpiFrance Assurance Export, the official export credit agency of France. This arrangement offers a substantial financing solution for a future fleet expansion, mitigating some of the upfront capital expenditure risk for the company. The loan, which will be assigned to RCL upon the ship's delivery, will amortize semi-annually over twelve years. The interest rate is set at a floating Term SOFR plus 0.85%, providing a predictable, albeit variable, cost of capital. This move signals continued investment in fleet modernization and capacity growth, which is a key driver for the cruise industry's long-term potential.

Key Highlights

  • 1RCL secures financing for its seventh Oasis-class ship, slated for Q2 2028 delivery.
  • 2A new credit agreement provides a US dollar-denominated term loan for the vessel's financing.
  • 3The loan is 100% guaranteed by BpiFrance Assurance Export, the French export credit agency.
  • 4The financing matures twelve years after the ship's delivery, with semi-annual amortization.
  • 5Interest rate is structured as Term SOFR plus a fixed spread of 0.85%.
  • 6Customary covenants and events of default are included in the agreement, alongside prepayment provisions.
  • 7The filing incorporates the credit agreement as an exhibit, providing further details on the financing terms.

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