U.S. markets open in 5 hours 26 minutes

Royal Caribbean Adds $2.2 Billion Credit Line Amid Shutdown

Jonathan Levin

(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.)

For more articles like this, please visit us at bloomberg.com

Subscribe now to stay ahead with the most trusted business news source.

©2020 Bloomberg L.P.