Royal Caribbean secures $700 million term loan from Morgan Stanley

By Sara Rosenberg

New York, Aug. 12 – Royal Caribbean Group has secured a binding commitment from Morgan Stanley for a $700 million term loan facility, according to a news release.

Royal Caribbean may draw on the facility any time before Aug. 12, 2021.

Once drawn, the loan will bear interest at Libor plus 3.75% and will mature 364 days from funding.

Royal Caribbean has the ability to increase the capacity of the facility by an additional $300 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional subsidiaries.

Royal Caribbean expects to use the proceeds for general corporate purposes.

The facility is guaranteed by RCI Holdings, LLC, a wholly owned subsidiary of the company that owns the equity interests in subsidiaries that own seven of Royal Caribbean’s vessels.

Perella Weinberg Partners LP is financial advisor, and Skadden Arps, Slate, Meagher & Flom LLP is legal advisor.

Formerly Royal Caribbean Cruises Ltd., Royal Caribbean is a Miami-based cruise vacation company.

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