RCL Nets Financing for Two Edge-Class Cruise Ships
Miami-based cruise company Royal Caribbean Cruises has entered into credit agreements for the financing of the first and second Edge-class ships for Celebrity Cruises, a brand subsidiary of RCL, which are scheduled for delivery in the fall of 2018 and the first half of 2020, respectively.
Each agreement makes available to Royal Caribbean Cruises Ltd. a US dollar-denominated term loan guaranteed 100% by Compagnie Française D’Assurance pour le Commerce Extérieur (COFACE), the official export credit agency of France, upon acceptance and delivery of the relevant ship.
“The maximum amount of each facility is equal to the US dollar equivalent of 80% of the vessel purchase price plus 100% of the premium payable to COFACE,” the cruise company said.
Once assigned to Royal Caribbean upon delivery of the ship, each loan is set to amortize semi-annually and mature twelve years thereafter.
The company added that the interest on each loan is expected to accrue at a fixed rate of 3.225%, inclusive of margin.
Celebrity Cruises signed a letter of intent for the two 117,000 gross ton cruise ships with French shipbuilder STX France in December 2014.
Featuring a length of 300 meters and a width of 38 meters, the new vessels will be able to carry 2,900 guests in 1,450 staterooms.
Construction is planned to start by summer 2016 for the 1st ship and one year later for the second one.