Royal Caribbean Group Secures $700 Million Facility Commitment


MIAMI, August 12, 2020 /PRNewswire/ — Royal Caribbean Group (NYSE: RCL) today announced that it has secured a firm commitment from Morgan Stanley for a $700 million term loan facility. The Company may draw on the facility at any time before August 122021. Once drawn, the loan will bear interest at L + 3.75% and will mature 364 days from funding. The facility will be guaranteed by RCI Holdings, LLC, a wholly owned subsidiary of the Company which owns the interests in subsidiaries that own seven of the Company’s vessels. The Company has the ability to increase the facility’s capacity by a $300 million from time to time subject to the receipt of additional or increased commitments and the issuance of guarantees by additional subsidiaries of the Company. In the event of a draw, the Company expects to use the net proceeds for general corporate purposes.

Perella Weinberg Partners LP acted as financial advisor and Skadden Arps, Slate, Meagher & Flom LLP acted as legal advisor to the company in connection with the term loan facility.

About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is the trading name of Royal Caribbean Cruises Ltd. Royal Caribbean Group owns four global cruise brands: Royal Caribbean International, Celebrity Cruises, Silversea and Azamara. Royal Caribbean Group also owns 50% of a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises. Together, our brands operate 62 vessels with 16 more on order from July 312020. Learn more about www.rclcorporate.com Where www.rcinvestor.com.

Caution Regarding Forward-Looking Statements
Certain statements in this release relating to, among other things, our estimates, forecasts and projections of future performance constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to: statements regarding revenues, costs and financial results for 2020 and beyond. Words such as “anticipate”, “believe”, “could”, “lead”, “estimate”, “expect”, “aim”, “intend”, “may”, “plan” , “project”, “seek”, “should”, “shall”, “should”, “considering” and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management’s current expectations, are based judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied in these forward-looking statements. Examples of such risks, uncertainties and other factors include, but are not limited to: the impact of the global incidence and spread of COVID-19, which has led to the temporary suspension of our operations and had and continued era to have a material adverse impact on our business and results of operations, or other contagious diseases on economic conditions and the travel industry generally and on the financial condition and results of operations of our Company in particular, such as: travel restrictions imposed, current and potential extension of cruise suspension and new additional suspensions, guest cancellations; our ability to obtain sufficient financing, capital or revenues to meet cash requirements, capital expenditures, debt repayments and other financing needs; the effectiveness of measures we have taken to improve and meet our liquidity needs; the impact of the economic and geopolitical environment on key aspects of our business, such as cruise demand, passenger spending and operating costs; incidents or negative publicity regarding our ships, port facilities, land destinations and/or passengers or the cruise industry generally; concerns regarding the safety, health and safety of guests and crew; further impairments of our goodwill, long-lived assets, equity investments and notes receivable; an inability to find our crew or provisions and supplies from certain locations; the outbreak of COVID-19 and other contagious diseases on our ships and increased concerns about the risk of illness on our ships or while traveling to or from our ships, which reduces demand; unavailability of ports of call; growing anti-tourism sentiments and environmental concerns; changes in US foreign travel policy; uncertainties associated with conducting business internationally and expanding into new markets and new businesses; our ability to recruit, develop and retain high quality personnel; changes in operating and financing costs; our indebtedness, any additional indebtedness we may incur and restrictions in the agreements governing our indebtedness that limit our flexibility in operating our business, including the material portion of the assets that are secured under such agreements; the impact of currency exchange rates, interest rates and fuel price fluctuations; settlement of conversions of our convertible notes, if any, into common stock or a combination of cash and common stock, which may result in substantial dilution for our existing shareholders; our expectation that we will not declare or pay dividends on our common stock in the near future; competition in the vacation industry and changes in industry capacity and overcapacity; the risks and costs associated with protecting our systems and maintaining the integrity and security of our business information, as well as the personal data of our guests, employees and others; the impact of new or changing laws and regulations or government orders on our business; pending or impending litigation, investigations and enforcement actions; the effects of weather, natural disasters and seasonality on our business; emergency vessel repairs, including related revenue loss; the impact of problems at shipyards, including ship delivery delays, ship cancellations or increases in ship construction costs; unavailability of the shipyard; and the unavailability or cost of air service.

In addition, many of these risks and uncertainties are currently exacerbated by, and will continue to be exacerbated by, or may be exacerbated in the future by, the COVID-19 pandemic. It is not possible to predict or identify all of these risks.

Further information about factors that could affect our results of operations is included under “Risk Factors” in our most recent Quarterly Report on Form 10-Q, as well as our other filings with the SEC, and “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Annual Report on Form 10-K, copies of which may be obtained by visiting our Investor Relations website. investors at www.rcinvestor.com or the SEC website at www.sec.gov. Undue reliance should not be placed on the forward-looking statements contained in this release, which are based on information available to us as of the date hereof. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Royal Caribbean Group

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