Royal Caribbean amends revolver to push out maturity, reduce rates

By Sara Rosenberg

New York, May 24 - Royal Caribbean Cruises Ltd. amended its unsecured revolving credit facility, extending the maturity to March 27, 2010 and reducing borrowings costs, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Interest on the revolver is based on ratings. If the senior debt rating is BBB+/Baa1 or higher then the rate is Libor plus 50 basis points. If the senior debt rating is BBB/Baa2 then the rate is Libor plus 62.5 bps. If the senior debt rating is BBB-/Baa3 then the rate is Libor plus 75 bps. If the senior debt rating is BB+/Ba1 then the rate is Libor plus 100 bps. If the senior debt rating is BB/Ba2 then the rate is Libor plus 125 bps. And, if the senior debt rating is BB- or lower/Ba3 or lower then the rate is Libor plus 175 bps.

The commitment fee can range from 10 bps to 37.5 bps, depending on ratings, the filing added.

The Miami-based cruise company's amendment was completed on May 18.

Citibank is the administrative agent on the deal.

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