Cruise company Royal Caribbean Cruises has entered into a USD 2.2 billion 364-day secured term loan facility to boost its liquidity position as the cruise industry has been negatively impacted by the coronavirus pandemic.
As informed, the facility can be extended at the company’s option for an additional 364 days.
Including this new financing, Royal Caribbean has over USD 3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities. 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,” Jason T. Liberty, executive vice president and CFO, said.
“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.”
Royal Caribbean Cruises operates four global brands — Royal Caribbean International, Celebrity Cruises, Azamara and Silversea Cruises. It is 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 seventeen on order.