Royal Caribbean reveals $5.9bn of financing

US cruiseship giant fixes funding for new Icon vessels and stretches other debt.

US cruiseship giant Royal Caribbean has unveiled new financing deals worth nearly $6bn.

The company said it had fixed funding for its two new 200,000-gt Project Icon vessels due from Meyer Turku in Finland in 2022 and 2024.

The cash is equal to 80% of the contract price, which will not exceed EUR 1.65bn ($1.94m) each.

Most of this is to be guaranteed 100% by Finnvera, Finland's export credit agency, with BNP Paribas Fortis as the agent.

The German equivalent body, Euler Hermes, has also agreed to provide a 95% guarantee of a smaller portion of the financing. The agent here is KfW IPEX-Bank.

The loans mature 12 years after delivery.

About 75% of the amount will carry a fixed interest rate of 3.56% in the case of the first Icon vessel, and 3.76% for the second.

The rest will be charged at a floating rate ranging from Libor plus 1.10% to Libor plus 1.15% for the first, and between 1.15% and 1.20% for the second.

Royal Caribbean also said it had sealed an agreement to amend and restate its $1.15bn revolving credit facility, with the option of taking out another $500m.

The deal extends the end date to October 2022.

Loans bear interest at Libor plus a margin of 1.175%. There is also a facility fee currently equal to 0.2% per year.

It said: "Under the amended facility, we have the ability to increase the capacity of the facility by an additional $500m from time to time subject to the receipt of additional or increased lender commitments."

Nordea Bank is acting as administrative agent for the lender parties, while other banks involved are HSBC, Commerzbank, Santander, Banco Bilbao Vizcaya Argentaria, Niederlassung Deutschland Bayerische Landesbank, DZ Bank, JPMorgan Chase Bank and Sumitomo Mitsui.