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Royal Caribbean Makes More Finance and Liquidity Moves

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Royal Caribbean Cruises announced it had amended its $1.55 billion unsecured revolving credit facility due 2022 with Nordea Bank ABP, New York Branch, as administrative agent, its $1.925 billion unsecured revolving credit facility due 2024 with The Bank of Nova Scotia, as administrative agent and its $1.0 billion unsecured three-year term loan agreement with Bank of America, N.A., as administrative agent.

"These amendments extend our waiver of the quarterly-tested fixed charge coverage and net debt to capitalization covenants in each Credit Facility through and including the fourth quarter of 2021 and increase the monthly-tested minimum liquidity covenant for the duration of the extended waiver period," the company said. "Pursuant to these amendments, the restrictions on paying cash dividends and effectuating share repurchases during the wavier period were extended through and including the fourth quarter of 2021. In addition, these amendments incorporate the restrictions on investments set forth in the indentures governing our 9.125% senior guaranteed notes due 2023, 10.875% senior secured notes due 2023 and 11.500% senior secured notes due 2025."

In addition, the company said it entered into financial covenant waiver extension consent letter with KfW IPEX-Bank GmbH to amend its Hermes backed loan facilities, including but not limited to, those incurred to finance Quantum of the Seas, Anthem of the Seas, Ovation of the Seas, Spectrum of the Seas and Odyssey of the Seas and amendments to the BpiFAE backed loan facilities incurred to finance Celebrity Edge, Celebrity Apex, and Symphony of the Seas in each case, in order to extend the period during which a breach of the financial covenants will not trigger a mandatory prepayment or default, as applicable, under each facility through and including the fourth quarter of 2021.

Similarly, on July 31, 2020, the company amended its Finnvera-backed loan facilities incurred to finance Icon 1, Icon 2 and Icon 3 in order to extend the period during which a breach of the financial covenants will not trigger a default under each facility through and including the fourth quarter of 2021; provided that certain structural enhancements are provided on or before September 30, 2020. 

 

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