Royal Caribbean takes out $2.2 billion loan

Reading on Yahoo finance that Royal Caribbean has taken out a $2.2 billion loan to help them get through these tough times.


Full release:

March 23 (Reuters) - Royal Caribbean Cruises Ltd said on Monday it had borrowed the entire $2.2 billion available under a new financing facility, boosting its liquidity amid the coronavirus outbreak that has resulted in halted sailings for the cruise operator.

U.S. companies have been rushing to borrow more money and boost their cash coffers, as market turmoil fueled by a plunge in oil prices and the virus outbreak raised the risk of an economic downturn.
With the 364-day secured term loan facility, Royal Caribbean has over $3.6 billion in liquidity, including cash deposits and its existing undrawn revolving credit facilities.

The cruise industry have been among the worst hit from the global pandemic as many operators had to halt operations due to travel restrictions imposed to curb the spread of the virus.
Earlier this month, the company raised its credit capacity by $550 million and said it would cut spending, operating expenses and take other actions to improve liquidity by at least another $1.7 billion in 2020.