Royal Caribbean has arranged commitments for unsecured financing in the amount of 80 percent of the contract price of Oasis of the Seas.
Royal Caribbean secures Oasis of the Seas financing
Royal Caribbean Cruises Ltd. (NYSE: RCL, Oslo) today announced it has arranged commitments for unsecured financing in the amount of $1,050,000,000 or 80 percent of the contract price of Royal Caribbean International's Oasis of the Seas.
The facility will be 95 percent guaranteed by Finnvera, the official export credit agency of Finland, and amortizes over 12 years. BNP Paribas, Nordea Bank and SEB have each committed to provide 20 percent of the financing and each may elect to opt-out after six years. Finnish Export Credit Ltd. will provide funding for the remaining 40 percent. The company has an option of a floating or fixed rate of interest, and overall terms will fall within the company's financial projections. The commitments are subject only to customary closing conditions.
"We are very pleased to have secured the financing for Oasis of the Seas," said Brian J. Rice, executive vice president and chief financial officer. "With the tight credit environment and lack of liquidity in the financial markets today, this financing is a testimony to the strength of our company, the terrific partnership we have with Finland, and the outstanding long-term relationships we enjoy with our banks."
Oasis of the Seas is currently under construction at STXEurope's Turku, Finland yard. When completed, the world's largest cruiseship will be 1,180 ft long and 154 ft wide, with a height above the waterline of 230 ft.