Royal Caribbean borrows $589M

[Jason]

Royal Caribbean borrows $589M

Source: South Florida Business Journal

To pay for its new cruise vessel Liberty of the Seas, Royal Caribbean Cruises Ltd. said it will borrow $589 million.

A credit agreement was made with various financial institutions, the Miami-based cruise line (NYSE: RCL) said, with Citibank N.A. as administrative agent. The unsecured loan is due through 2014 at the current interest rate of 4.215 percent a year.

Currently under construction at Aker Finnyards in Turku, Finland, Liberty of the Seas is to closely mirror its prototype, Freedom of the Seas, with amenities including a surfing simulator and whirlpools suspended more than 200 feet above the ocean.

Liberty of the Seas is the second Freedom-class ship for Royal Caribbean, which plans to homeport the vessel in Miami. The ship is scheduled to debut in May.

The 3,600-guest vessel is to sail alternating seven-night eastern and western Caribbean itineraries year-round from Miami. Ports of call are to include San Juan, Puerto Rico; Philipsburg, St. Maarten; and Labadee, Haiti, in the east and Labadee; Montego Bay, Jamaica; George Town, Grand Cayman; and Cozumel, Mexico, in the west.

[eagleforest]

Prices are going to go up my my cabin.

or

My interest rate on my RCCL Visa card may go up due to this

[JoeyandDavid]

my bet is both.....

[Spikesgirl]

I guess my question, not just for RCI, but for all the cruiselines, is just how many more mega-ships do we really need? I'd love to see some of the major cruiselines start focusing on building some smaller (less than 1,000) ships.

Just my own bugaboo,

Charlie