Morgan Stanley, J.P. Morgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners on a $2.2 billion 364-day secured term loan facility for Royal Caribbean Cruises.
Morgan Stanley is acting as an administrative agent and collateral agent on the facility as well. Perella Weinberg Partners served as financial advisor and Skadden Arps, Slate, Meagher & Flom served as legal advisor to Royal Caribbean Cruises in connection with the secured term loan facility.
The facility can be extended at Royal Caribbean Cruises’ option for an additional 364 days. The company has borrowed the full amount available under the term loan to further bolster its liquidity. Including this new financing, the company has more than $3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities (net of outstanding commercial paper). In addition, the company has committed financing for all of its new ships on order.
“This is a period of unprecedented disruption for the cruise industry,” Jason T. Liberty, executive vice president and CFO of Royal Caribbean Cruises, said. “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.”