Royal Caribbean boosts liquidity

2020-03-26T22:40:38+00:00 March 26th, 2020|Finance|

Royal Caribbean Cruises has agreed a $2.2 bill, 364-day secured term loan facility, to further enhancing the company’s liquidity position.

The facility can be extended at the company’s option for an additional 364 days.

RCC has borrowed the full amount available under the term loan to further bolster its liquidity.

Including the new facility, the company has over $3.6 bill of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities (net of outstanding commercial paper). In addition, the company has committed financing for all of its newbuildings.

“This is a period of unprecedented disruption for the cruise industry,” said Jason Liberty, RCC Executive Vice President and CFO (pictured). “We continue to take decisive actions to protect the company’s financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans.”

Morgan Stanley, JP Morgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners on the secured term loan facility, while Morgan Stanley is acting as an Administrative Agent and Collateral Agent on the facility.

Perella Weinberg Partners served as financial advisor and Skadden Arps, Slate, Meagher & Flom served as legal advisor to the company in connection with the secured term loan facility, RCC explained.

In a later message, Royal Caribbean said that the suspension of cruise ship operations will be extended to 12th May.