News

Royal Caribbean extends global suspension of cruising

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 24 March 2020 24 March 2020

Given global public health circumstances, Royal Caribbean Cruises Ltd. has decided to extend the suspension of sailings of its global fleet.

"We are working with our guests to address this disruption to their vacations, and we are genuinely sorry for their inconvenience. We are also working with our crew to sort out the issues this decision presents for them," the company said in a statement.

"We expect to return to service on May 12, 2020. Because of announced port closures, we expect to return to service for Alaska, Canada and New England sailings July 1, 2020."

Royal Caribbean secures $2.2 billion loan facility

Details: Written by Teijo Niemelä Teijo Niemelä; Category: Top Headlines Top Headlines; Published: 23 March 2020 23 March 2020

Royal Caribbean Cruises Ltd 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."

Morgan Stanley, J.P. Morgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners on the secured term loan facility. Morgan Stanley is acting as an Administrative Agent and Collateral Agent on the facility. Perella Weinberg Partners LP served as financial advisor and Skadden Arps, Slate, Meagher & Flom LLP served as legal advisor to the company in connection with the secured term loan facility.

Meyer Werft suspends work on Iona

Details: Written by Kari Reinikainen Kari Reinikainen; Category: Top Headlines Top Headlines; Published: 20 March 2020 20 March 2020

Meyer Werft, the German cruise ship builder, said it has suspended work on P&O Cruises’ newbuilding Iona and the ship has been docked in Bremerhaven for the time being.

The ship was moved from Meyer’s shipyard in Papenburg on the River Ems to Bremerhaven, but due to the coronavirus pandemic, work on the interior of the ship has been suspended and sea trials have been postponed, the company said in a statement.

Only those people who are needed for safety of the ship will remain onboard.

Iona is the first of two 185,000 gross ton newbuildings for P&O Cruises, which is part of Carnival Corporation & plc. It had been scheduled to enter service on seven night cruises from Southampton to Norway in the early summer.

The LNG powered ship is based on a platform shared by Costa Crociere, AIDA Cruises, P&O Cruises and Carnival Cruise Line and the ships are being built at Meyer's shipyards in Papenburg and in Turku in Finland. The second, as yet unnamed vessel, is due to enter service with P&O Cruises in 2022.