Royal Caribbean Executes a $500 Million Unsecured Revolving Credit Facility.Business Editors/Travel Writers MIAMI--(BUSINESS WIRE)--March 27, 2003 Royal Caribbean Cruises Ltd. (NYSE NYSE See: New York Stock Exchange :RCL RCL - Reduced Control Language. A simplified job control language for OS360, translated to IBM JCL. "Reduced Control Language for Non- Professional Users", K. Appel in Command Languages, C. Unger ed, N-H 1973. ), (OSE OSE - Open Systems Environment :RCL) announced today that it has executed a $500 million unsecured revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility to replace the company's current $1 billion revolving credit facility which was set to expire in June of this year. Salomon Smith Barney Smith Barney is a division of Citigroup Global Capital Markets Inc., a global, full-service financial firm, that provides brokerage, investment banking and asset management services to corporations, governments and individuals around the world. Inc. and Nordea served as joint lead arrangers and Den norske Bank Den norske Bank or DnB was a Norwegian bank that existed between 1990 and 2003 when it merged with Gjensidige NOR to form the present DnB NOR. The bank's headquarters were in Bergen, Norway. as documentation agent for the facility. The facility has a term of five years, bears interest at LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). plus 1.75 percent (subject to certain adjustments) and will be utilized for general corporate purposes. The financial covenants are substantially the same as those under the company's existing revolving credit facility. The loan agreement anticipates that the company may increase the facility's size to a maximum of $1 billion upon receiving additional commitments. "While the conflict with Iraq has caused considerable deterioration in financial market conditions during these negotiations, we are satisfied with the overall size and structure of our new facility," said Bonnie S. Biumi, acting chief financial officer of Royal Caribbean Cruises Ltd. "Combined with our other financial resources, the facility should provide us with sufficient liquidity for our needs, including delivery of the three remaining ships in our 13 ship fleet expansion program." Royal Caribbean Cruises Ltd. is a global cruise vacation company that operates Royal Caribbean International Royal Caribbean International (OSE: RCL NYSE: RCL) is a Norwegian-American cruise ship company based in Miami, Florida. It is a brand of Royal Caribbean Cruises Ltd., with 21 ships in service and one more under construction. All the ships have names ending in "of the Seas. and Celebrity Cruises, with a combined total of 25 ships in service and three under construction or on firm order. The company also offers unique land-tour vacations in Alaska, Canada and Europe through its cruise-tour division. Additional information can be found on http://www.royalcaribbean.com, http://www.celebrity.com or http://www.rclinvestor.com. Certain statements in this news release are forward-looking statements. Forward-looking statements do not guarantee future performance and may involve risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Such factors include general economic and business conditions, vacation industry competition, including cruise industry competition, changes in vacation industry capacity (including cruise capacity), the impact of tax laws and regulations affecting our business or our principal shareholders, the impact of changes in other laws and regulations affecting our business, the impact of pending or threatened litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , the delivery of scheduled new ships, emergency ship repairs, incidents involving cruise ships at sea, reduced consumer demand for cruises as a result of any number of reasons (including armed conflict, terrorist attacks, geo-political and economic uncertainties or the unavailability of air service), changes in interest rates or oil prices, weather and other factors described in further detail in Royal Caribbean's filings with the Securities and Exchange Commission. |
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