Royal Caribbean lines up €637 million term loan with KfW IPEX-Bank

By Susanna Moon

Chicago, Dec. 3 - Royal Caribbean Cruises Ltd. inked an agreement for an unsecured term loan in a dollar amount equal to about €637 million, according to an 8-K filing with the Securities and Exchange Commission.

The company entered into a credit agreement on Nov. 27 for the financing of the third Quantum-class ship for Royal Caribbean International.

Euler Hermes Deutschland AG, the official export credit agency of Germany, agreed to guarantee 95% of the financing.

The loan, once funded, will amortize semiannually and will mature 12 years following the delivery of the ship, which is scheduled to occur in the second quarter of 2016.

Interest will accrue either at a fixed rate of 3.32% or at a floating rate equal to Libor plus 100 basis points.

KfW IPEX-Bank GmbH is the initial mandated lead arranger, facility agent, Hermes Agent and original lender.

Royal Caribbean is a Miami-based cruise vacation company.

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