Royal Press release about financing

[Quo Vadis?]

"

Royal Caribbean Comments On New Financing Facility

March 23, 2020

 

MIAMI, March 23, 2020 /PRNewswire/ -- Royal Caribbean Cruises Ltd (NYSE: RCL) today announced that it has entered into a $2.2 billion 364-day secured term loan facility, further enhancing the company's liquidity position.  The facility can be extended at the company's 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 over $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," said Jason T. Liberty, executive vice president and CFO.  "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."

[ECCruise]

Oh boy, even more debt. 

[sfaaa]

Look at the bright side. Money is dirt cheap to borrow right now.

[ECCruise]

2 minutes ago, sfaaa said:

Look at the bright side. Money is dirt cheap to borrow right now.

Debt load is debt load.  RCCL was already overburdened with debt.  All of those $ billions in revenue spent on dividends and buybacks.  No cash reserve to speak of. And that, with not paying a dime in tax in the US.

No thought of a change in the economic environment.  Some corporations have maintained their cash position over the years and are much better prepared to weather the coming storm (and, in some cases, are not in as volatile a sector as cruise companies). 

[Oceangoer2]

21 minutes ago, ECCruise said:

Debt load is debt load.  RCCL was already overburdened with debt.  All of those $ billions in revenue spent on dividends and buybacks.  No cash reserve to speak of. And that, with not paying a dime in tax in the US.

No thought of a change in the economic environment.  Some corporations have maintained their cash position over the years and are much better prepared to weather the coming storm (and, in some cases, are not in as volatile a sector as cruise companies). 

 

Over expansion in such a short period of time and not allowing for unexpected financial downturns, has serious results.  Where was their CFO and B of D and fiscal responsibility.  I think of all the folks who have investments in RCL buried in different vehicles with stocks and funds plummeting. 

[hcat]

I leave the big finance issues to others but ask Royal and X...

 

How about using some of that liquidity to  promptly refund our credit cards for cancelled cruises?    Process has slowed to a crawl...other than future cruise credits which are just paper IOUs

 

 They are also holding deposits on cruises that may never happen.....

[BP99]

20 minutes ago, hcat said:

I leave the big finance issues to others but ask Royal and X...

 

How about using some of that liquidity to  promptly refund our credit cards for cancelled cruises?    Process has slowed to a crawl...other than future cruise credits which are just paper IOUs

 

 They are also holding deposits on cruises that may never happen.....

They are also holding refunds on cancelled cruises that may never happen.....

[farawayatsea]

They say they have funding in place for the new ships but that kind of support is usually subject to a negative material event clause. I think we can all agree that the virus is probably the biggest negative material event we have ever lived through.