Miami-based cruise company Royal Caribbean International (RCI) has entered into credit agreements for the financing of the recently announced first and second Project Icon ships.
Under the deals, reportedly signed on 11th October, 2017, RCI will receive an unsecured US dollar-denominated term loan, the substantial majority of which is to be guaranteed 100% by the official export credit agency of Finland, Finnvera plc.
Euler Hermes, the official German export credit agency, has also agreed to provide a 95% guarantee for part of the financing.
The maximum amount of each facility is equal to the US dollar equivalent of 80% of the vessel purchase price, plus 100% of the guarantee premiums payable to Finnvera and Hermes, RCI said.
Each loan, once funded, will amortise semi-annually and will mature 12 years following the delivery of the new ship. Around 75% of each loan will accrue interest at a fixed rate of 3.56%, in the case of the first ‘Project Icon’ vessel, and 3.76% for the second.
The new 200,000 gt ships are to be built by Finnish shipbuilder, Meyer Turku, for delivery in the second quarters of 2022 and 2024, respectively.
RCI had earlier revealed that the vessel will be powered by LNG and will also use fuel cell technology.
In addition, on 12th October, the company signed an agreement to amend and restate its current $1.15 bill unsecured revolving credit facility. The amendment extends the termination date to October, 2022.