Royal Caribbean Cruises Ltd, (RCCL), the world’s second largest cruise shipping group, said it has amended three revolving loan facilities.

These are $1.55 billion unsecured revolving credit facility due 2022 with Nordea Bank ABP, a $1.925 billion unsecured revolving credit facility due 2024 with The Bank of Nova Scotia and a $1.0 billion unsecured term loan due 2022 with Bank of America.

“These amendments, among other things, extend the waiver of the quarterly-tested fixed charge coverage and net debt to capitalization covenants in each Credit Facility through and including the third quarter of 2022 or, if earlier, that date falling after January 1, 2022 on which we elect to comply with the modified covenants (the “Waiver Period”),” the company said in a statement.

“In addition, pursuant to the amendments, we have modified the manner in which such covenants are calculated (temporarily in certain cases and permanently in others) as well as the levels at which the net debt to capitalization covenant will be tested during the period commencing immediately following the end of the Waiver Period and continuing through the end of 2023,” RCCL said.

The amendments increase the monthly-tested minimum liquidity covenant to $500 million for the duration of the waiver period, subject to reduction to $350 million if RCCL raise at least $500 million of additional capital. “Pursuant to these amendments, the restrictions on paying cash dividends and effectuating share repurchases were extended through and including the third quarter of 2022,” the company said.

Photo: Silver Moon of Silversea Cruises. The company is part of RCCL