Royal Caribbean Cruises enters $2.2 billion 364-day term loan

By Wendy Van Sickle

Columbus, Ohio, March 23 – Royal Caribbean Cruises Ltd. entered into a $2.2 billion 364-day secured term loan facility to further enhance its liquidity position, according to a news release.

The facility can be extended at the company’s option for an additional 364 days. The company has borrowed the full amount available under the term loan to bolster its liquidity.

Morgan Stanley, JPMorgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners. Morgan Stanley is administrative agent.

Including the new financing, the company has more than $3.6 billion of liquidity comprising cash deposits and its existing undrawn revolving credit facilities, net of outstanding commercial paper. In addition, the company said it has committed financing for all of its new ships on order.

“This is a period of unprecedented disruption for the cruise industry,” Jason T. Liberty, executive vice president and chief financial officer of Royal Caribbean, said in the release. “We continue to take decisive actions to protect the company’s financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans.”

Royal Caribbean is a Miami-based cruise vacation company.

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