Royal Caribbean Group has secured a binding commitment from Morgan Stanley for a $700 mill term loan facility.
The company said it may draw on the facility at any time prior to 12th August, 2021. Once drawn, the loan will bear interest at LIBOR + 3.75% and will mature 364 days from funding.
This facility will be guaranteed by RCI Holdings, a wholly owned subsidiary of the company that owns the equity interests in subsidiaries owning seven of the company’s vessels.
Royal Caribbean is able to increase the facility’s capacity by an additional $300 mill from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees from additional company subsidiaries. If drawn, the company expects to use the net proceeds for general corporate purposes.
Perella Weinberg Partners served as financial advisor and Skadden Arps, Slate, Meagher & Flom served as legal advisor to the company in connection with this facility.