Royal Caribbean enters term loan agreements to purchase two vessels

By Wendy Van Sickle

Columbus, Ohio, Nov. 19 – Royal Caribbean Cruises Ltd. entered into term loan credit agreements to finance its fourth and fifth Quantum-class ships on Nov. 13, according to an 8-K filed with the Securities and Exchange Commission.

The ships are scheduled for delivery in the second quarter of 2019 and fourth quarter of 2020. Each agreement provides for a term loan guaranteed 95% by Euler Hermes Deutschland AG, the official export credit agency of Germany.

The maximum amount of each facility is equal to the U.S. dollar equivalent of 80% of the vessel purchase price, not to exceed €931 million for one vessel and not to exceed €948.85 million for the other, plus 100% of the premium payable to Hermes.

Each loan will amortize semiannually and will mature 12 years after the delivery of the pertinent ship. Interest on each loan will accrue at Libor plus 95 bps.

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

Royal Caribbean is a Miami-based cruise vacation company.

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