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Royal Caribbean secures agreement for $700m loan

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Royal Caribbean secures agreement for $700m loan

Royal Caribbean Group has secured a commitment from US bank Morgan Stanley for a $700 million loan facility.

The cruise giant may draw on the facility at any time before August 12, 2021.

It can increase the loan by an additional $300 million from time to time, subject to the receipt of additional or increased commitments.

The company expects to use the net proceeds for general corporate purposes.

On Monday (August 10), Royal Caribbean Group posted a second-quarter net loss of $1.6 billion.

In May 2020, it posted a first-quarter loss of $1.4 billion.

The parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea paused operations amid the global Covid-19 pandemic on March 13.

Royal Caribbean Group estimates its cash burn to be between $250 million to $290 million per month during the suspension of operations.

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Coronavirus: Royal Caribbean agrees $2.2bn loan facility

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Royal Caribbean Cruises has agreed a $2.2 billion loan facility with banks to shore up cash flow as the coronavirus pandemic hits travel companies.

The cruise giant said it has “borrowed the full amount available under the term loan to further bolster its liquidity”.

Royal said it has more than $3.6 billion in cash and has committed financing for all of its new ships on order.

“This is a period of unprecedented disruption for the cruise industry,” said chief finance officer Jason T. Liberty.

“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, which owns Celebrity Cruises, Azamara and Silversea, suspended sailings earlier this month along with other cruise lines around the world as travel restrictions were imposed globally.