MIAMI, March 23, 2020 /PRNewswire/ -- Royal
Caribbean Cruises Ltd (NYSE: RCL) today announced that it has
entered into a $2.2 billion 364-day
secured term loan facility, further enhancing the company's
liquidity position. The facility can be extended at the
company's option for an additional 364 days. The company has
borrowed the full amount available under the term loan to further
bolster its liquidity.
Including this new financing, the company has over $3.6 billion 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 new ships on order.
"This is a period of unprecedented disruption for the cruise
industry," said Jason T. Liberty,
executive vice president and CFO. "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, J.P. Morgan, Bank of America, BNP Paribas and
Goldman Sachs acted as joint lead arrangers and bookrunners on the
secured term loan facility. Morgan Stanley is acting as an
Administrative Agent and Collateral Agent on the facility.
Perella Weinberg Partners LP served as financial advisor and
Skadden Arps, Slate, Meagher & Flom LLP served as legal advisor
to the company in connection with the secured term loan
facility.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise
vacation company that controls and operates four global brands:
Royal Caribbean International, Celebrity Cruises, Azamara and
Silversea Cruises. We are also a 50% joint venture owner of
the German brand TUI Cruises and a 49% shareholder in the Spanish
brand Pullmantur Cruceros. Together these brands operate a
combined total of 61 ships with an additional 17 on order as of
December 31, 2019. They operate
diverse itineraries around the world that call on all seven
continents. Additional information can be found on
www.royalcaribbean.com www.celebritycruises.com,
www.azamara.com, www.silversea.com, www.tuicruises.com,
www.pullmantur.es, or www.rclinvestor.com.
Certain statements in this release relating to, among other
things, our future performance constitutes forward-looking
statements under the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to:
statements regarding revenues, costs and financial results for 2020
and beyond. Words such as "anticipate," "believe," "could,"
"driving," "estimate," "expect," "goal," "intend," "may," "plan,"
"project," "seek," "should," "will," "would," and similar
expressions are intended to help identify forward-looking
statements. Forward-looking statements reflect management's
current expectations, are based on judgments, are inherently
uncertain and are subject to risks, uncertainties and other
factors, which could cause our actual results, performance or
achievements to differ materially from the future results,
performance or achievements expressed or implied in those
forward-looking statements. Examples of these risks,
uncertainties and other factors include, but are not limited to the
following: the impact of the economic and geopolitical environment
on key aspects of our business, such as the demand for cruises,
passenger spending, and operating costs; our ability to obtain
sufficient financing, capital or revenues to satisfy liquidity
needs, capital expenditures, debt repayments and other financing
needs; the effectiveness of the actions we have taken to improve
and address our liquidity needs; incidents or adverse publicity
concerning our ships, port facilities, land destinations and/or
passengers or the cruise vacation industry in general; concerns
over safety, health and security of guests and crew; the impact of
the global incidence and spread of COVID-19, which has had and will
continue to have a material negative impact on our operating
results and liquidity, or other contagious illnesses on economic
conditions and the travel industry in general and the financial
position and operating results of our company in particular, such
as: the current and potential additional governmental and
self-imposed travel restrictions, the current and potential
extension of the suspension of cruises and new additional
suspensions, guest cancellations, an inability to source our crew
or our provisions and supplies from certain places, the incurrence
of COVID-19 and other contagious diseases on our ships and an
increase in concern about the risk of illness on our ships or when
traveling to or from our ships, all of which reduces demand;
unavailability of ports of call; growing anti-tourism sentiments
and environmental concerns; changes in US foreign travel policy;
the uncertainties of conducting business internationally and
expanding into new markets and new ventures; our ability to
recruit, develop and retain high quality personnel; changes in
operating and financing costs; our indebtedness and restrictions in
the agreements governing our indebtedness that limit our
flexibility in operating our business, including the significant
portion of assets that are collateral under these agreements; the
impact of foreign currency exchange rates, interest rate and
fuel price fluctuations; vacation industry competition and changes
in industry capacity and overcapacity; the risks and costs
associated with protecting our systems and maintaining integrity
and security of our business information, as well as personal data
of our guests, employees and others; the impact of new or
changing legislation and regulations or governmental orders on our
business; pending or threatened litigation, investigations and
enforcement actions; the effects of weather, natural disasters and
seasonality on our business; emergency ship repairs, including the
related lost revenue; the impact of issues at shipyards, including
ship delivery delays, ship cancellations or ship construction cost
increases; shipyard unavailability; and the unavailability or cost
of air service.
More information about factors that could affect our operating
results is included under the captions "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" in our most recent annual report on Form
10-K and our recent quarterly reports on Form 10-Q, copies of which
may be obtained by visiting our Investor Relations website at
www.rclinvestor.com or the SEC's website at www.sec.gov. Undue
reliance should not be placed on the forward-looking statements in
this release, which are based on information available to us on the
date hereof. We undertake no obligation to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
View original
content:http://www.prnewswire.com/news-releases/royal-caribbean-comments-on-new-financing-facility-301028303.html
SOURCE Royal Caribbean Cruises Ltd.