Royal Caribbean gets $700 million term loan for Silversea purchase

By Wendy Van Sickle

Columbus, Ohio, July 5 – Royal Caribbean Cruises Ltd. entered into a 364-day unsecured term loan credit agreement on June 29 to finance a portion of the purchase price related to its previously announced acquisition of 66.67% of the outstanding share capital of Silversea Cruise Holding Ltd, according to an 8-K filed with the Securities and Exchange Commission.

The loan agreement makes available to Royal Caribbean, on any single business day, up to $700 million in term loans.

The interest rate will be Libor plus a margin ranging from 90 basis points to 150 bps, depending on Royal Caribbean’s senior debt rating.

After a 60-day grace period, and until the commitments of the lenders have terminated, the company will pay a ticking fee of 8 bps to 20 bps a year, depending on the company’s senior debt rating.

The lenders’ commitments will terminate on the earlier of the funding date and Nov. 15. The advances will mature 364 days from July 2, the day the lenders’ obligations became effective.

JPMorgan Chase Bank, NA, Citigroup Global Markets Ltd., Goldman Sachs Bank USA, Bank of America Merrill Lynch and Morgan Stanley Senior Funding, Inc. acted as joint lead arrangers and joint bookrunners.

JPMorgan is the administrative agent.

Bank of America, NA, Citigroup, Goldman Sachs and Morgan Stanley are the co-syndication agents.

Royal Caribbean is a Miami-based cruise vacation company. Silversea is a luxury cruise line that is based in Monaco.

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