Royal Caribbean Cruises entered into credit agreements for the financing of the first and second Edge-class ships for celebrity cruises, which are scheduled for delivery in the fall of 2018 and the first half of 2020, respectively.
Citibank Europe served as facility agent, HSBC France served as French coordinating bank, Sumitomo Mitsui served as ECA agent and Banco Bilbao Vizcaya Argentaria, Banco Santander, Citibank, HSBC France, Société Générale and Sumitomo Mitsui were mandated lead arrangers.
Each agreement makes available to Royal Caribbean Cruises, upon acceptance and delivery of the relevant ship, an U.S. dollar-denominated term loan guaranteed 100% by Compagnie Française D’Assurance pour le Commerce Extérieur (“COFACE”), the official export credit agency of France. The maximum amount of each facility is equal to the U.S. dollar equivalent of 80% of the vessel purchase price plus 100% of the premium payable to COFACE.
Each loan, once assigned to upon delivery of the ship, will amortize semi-annually and will mature 12 years thereafter. Interest on each loan is expected to accrue at a fixed rate of 3.225% (inclusive of margin). The credit agreements contain customary events of default and prepayment events for, among other things, non-payment, breach of covenants, default on certain other indebtedness, certain large judgments and a change of control of the company.