Royal Caribbean works on financing options on 5 ships
Royal Caribbean Cruises stated that in order to leverage the advantages of a 12-month debt holiday initiative provided by Euler Hermes Aktiengesellschaft, Germany's official export credit agency, it had made improvements to the export-backed loan facility
"As we have previously disclosed, the intention of this initiative is to provide interim debt service and financial covenant relief during the current global health crisis to cruise-line borrowers with respect to their Hermes-guaranteed financings," the company announced.
Under the terms of the change, a new tranche of the loan has been made available to us by the lenders, whose proceeds will be used to fund any principal amortization payments due on the facility between Apr 1, 2020 and Mar 31, 2021.
The lenders have decided that a violation of the financial covenants would not cause compulsory prepayment under the loan during the Deferral Period.
The company also announced that it had updated the export-credit backed loan facilities acquired to fund the Celebrity Eclipse, Celebrity Equinox, Celebrity Solstice and Celebrity Silhouette to add the Debt Holiday benefits.
Maritime Business World