(Bloomberg) -- Royal Caribbean Cruises Ltd. obtained a $2.2 billion secured term credit line to bolster its finances after coronavirus shut down the U.S. cruise industry.
With the new facility, Royal Caribbean said it now has over $3.6 billion at its disposal, including cash deposits and other existing, revolving credit that hasn’t been used.
The loan matures on March 22, 2021, according to a company filing. The maturity can be extended another 364 days subject to conditions, including a 1% extension fee. Interest accrues at Libor plus a margin of 2.25%, which increases to 2.5% 180 days after funding and 2.75% 365 days after funding. The company is also required to pay a duration fee equal to 0.25% of the amounts outstanding.
Morgan Stanley, JPMorgan Chase & Co., Bank of America Corp., BNP Paribas SA and Goldman Sachs Group Inc. arranged the financing.
(Updates with details from filing in paragraph three.)
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