Cruise NewsRoyal CaribbeanRoyal Caribbean Gets Another Lifeline with $700 Million Loan

Royal Caribbean Gets Another Lifeline with $700 Million Loan

Royal Caribbean Group, owner of the cruise lines Royal Caribbean, Celebrity Cruises, Azamara, Silversea, TUI, and Hapag Lloyd, received another lifeline today with a $700 million loan.

Our free cruise newsletter offers the latest cruise news and deals: Sign Up

It’s no secret that cruise lines are burning cash with cruises shutdown over the past five months. With little to no revenue coming in, they have had to raise the right about of equity to stay afloat until cruises can resume. Royal Caribbean is currently burning through over $250 million a month.

Royal Caribbean has secured a binding commitment from Morgan Stanley for a $700 million term loan facility. They 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 cruise ships.

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.

Learn the cruise secrets most people don't know and cruise like a boss. Check out Intelligent Cruiser here for a better cruise vacation. (Sponsored)

Ben Souza
Ben Souza
Ben is a world traveler who has visited 40+ countries, taken over 70 cruises. He is one of USA TODAY's experts for their 10Best Readers' Choice Awards. His writings have appeared and been cited in various media outlets such as Yahoo News, MSN, NPR, CNN, Fox, and ABC News. Ben currently resides in Cincinnati, Ohio. Follow Ben on Instagram. Visit Ben Souza on Linkedin. You may email Ben at [email protected].
Cruise NewsRoyal CaribbeanRoyal Caribbean Gets Another Lifeline with $700 Million Loan

Recent Popular Posts