Tag Archives: Icon of the Seas

Royal Caribbean Proposes Refinancing on High-Interest Debt

Posted on by
Reply

Independence of the Seas in Southampton, Photo credit Spacejunkie2 (Flickr)

Royal Caribbean Cruises Toady announced that it has commenced a private offering of senior guaranteed notes due 2029 for an aggregate principal amount of $1.0 billion and a concurrent private offering of senior secured notes due 2029, for an aggregate principal amount of $1.0 billion.

The Company intends to use the proceeds from the sale of the Senior Guaranteed Notes and the Senior Secured Notes, together with cash on hand, to redeem all its outstanding 9.125% Priority Guaranteed Notes due 2023 and 10.875% Senior Secured Notes due 2023, respectively, concurrently with the respective closing of the Senior Guaranteed Notes and Senior Secured Notes offerings (including to pay fees and expenses in connection with such redemptions).

The Senior Guaranteed Notes will be guaranteed on a senior unsecured basis by RCI Holdings LLC, which owns 100% of the equity interests of certain of the Company’s wholly-owned vessel-owning subsidiaries.

The Senior Secured Notes will be guaranteed by Celebrity Cruises Inc., Celebrity Cruises Holdings Inc. and certain of the Company’s wholly-owned vessel-owning subsidiaries. The Senior Secured Notes and the related guarantees will be secured by 26 of the Company’s vessels and material intellectual property of the Company in an amount not to exceed permitted capacity under the Company’s existing indebtedness.

The closing of each offering is not contingent upon the closing of the other offering.

Royal Caribbean’s Ships: 44 Percent Full in Q3 But Cash Flow Accretive

Posted on by
Reply

Independence of the Seas in Southampton Photo Credit Spacejunkie2

How full are Royal Caribbean Group’s cruise ships?

The company reported on Friday that ships in its core deployment regions in the third quarter saw a load factor of 44 per cent occupancy.

Despite the low load factor, the company said that those ships were cash flow accretive excluding start-up costs.

Total revenue per passenger cruise day was up 12 per cent versus record levels seen in 2019 based on strong onboard revenue performance.

The company said in its third-quarter earnings release it hopes to ramp up to load factors of 65 to 70 per cent during the fourth quarter and expects ships in the fourth quarter will be cash flow accretive even when including start-up costs.  

By the end of the year, the company expects that 50 out of 61 ships will have returned to service, representing almost 100% of core itinerary capacity and approximately 80% of worldwide capacity. 

The remaining ships are expected to return by the spring of 2022 and return to historical load factors in the third quarter of 2022.

Icon of the Seas Gets First 307-Ton LNG Fuel Tank Installed

Posted on by
Reply

Royal Caribbean International has posted a video of the installation of the first of the two LNG fuel tanks that the new Icon of the Seas will boast.

The fuel tank – which Royal Caribbean brands are “game-changing” – weighs 307 tons and measures 90 feet (27 meters) in length. According to the cruise line, they are the largest LNG (liquefied natural gas) fuel tanks in the cruise industry.

The 5,000-passenger ship will be the cruise line’s first ship powered by LNG. Its construction is underway at Meyer Turku shipyard. The vessel is set to debut in fall 2023.

The cruise line said that LNG makes for “virtually zero sulfur dioxides and particulates” and a “significant reduction in nitrous oxides.” The ship will also use shore power connectivity to remove emissions while connected at the port, as well as advanced waste heat recovery systems that repurpose heat to be used as energy onboard.

The Icon of the Seas is the first ship in the cruise line’s new Icon Class. Royal Caribbean said that the vessel will “make waves” with a mix of innovations and adventures “cruising’s never seen before.”

The ship will be a significant milestone in the cruise line’s journey to becoming emission-free and building a “clean-energy future,” Royal Caribbean wrote.

“Decades of continuous improvement in energy efficiency and ocean conservation will be evident throughout the Icon,” the cruise line shared.