MIAMI, Aug. 12, 2020 /PRNewswire/ -- Royal Caribbean
Group (NYSE: RCL) today announced that it has secured a binding
commitment from Morgan Stanley for a $700
million term loan facility. The Company may draw on
the facility at any time prior to August
12, 2021. Once drawn, the loan will bear interest at L
+ 3.75% and will mature 364 days from funding. The facility
will be guaranteed by RCI Holdings, LLC, a wholly owned subsidiary
of the Company that owns the equity interests in subsidiaries that
own seven of the Company's vessels. The Company has the
ability to increase the capacity of the facility by an additional
$300 million from time to time
subject to the receipt of additional or increased commitments and
the issuance of guarantees from additional subsidiaries of the
Company. If drawn, the Company expects to use the net
proceeds for general corporate purposes.
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 term loan facility.
About Royal Caribbean Group
Royal Caribbean Group
(NYSE: RCL) is the operating business name for Royal Caribbean
Cruises Ltd. Royal Caribbean Group is the owner of four
global cruise vacation brands: Royal Caribbean International,
Celebrity Cruises, Silversea and Azamara. Royal Caribbean Group is
also a 50% owner of a joint venture that operates TUI Cruises and
Hapag-Lloyd Cruises. Together, our brands operate 62 ships with an
additional 16 on order as of July 31,
2020. Learn more at www.rclcorporate.com or
www.rclinvestor.com.
Cautionary Statement Concerning Forward-Looking
Statements
Certain statements in this release relating to,
among other things, our future performance estimates, forecasts and
projections constitute 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," "considering", 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 global
incidence and spread of COVID-19, which has led to the temporary
suspension of our operations and has had and will continue to have
a material adverse impact on our business and results of
operations, 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; 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;
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; 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; further
impairments of our goodwill, long-lived assets, equity investments
and notes receivable; 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, any additional indebtedness we may incur 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; the settlement of conversions of
our convertible notes, if any, in shares of our common stock or a
combination of cash and shares of our common stock, which may
result in substantial dilution for our existing shareholders; our
expectation that we will not declare or pay dividends on our common
stock for the near future; 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.
In addition, many of these risks and uncertainties are currently
heightened by and will continue to be heightened by, or in
the future may be heightened by, the COVID-19 pandemic. It is not
possible to predict or identify all such risks.
More information about factors that could affect our operating
results is included under the caption "Risk Factors" in our most
recent quarterly report on Form 10-Q, as well as our other filings
with the SEC, and 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, 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.
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SOURCE Royal Caribbean Group