ROYAL CARIBBEAN CRUISES LTDRCL
ROYAL CARIBBEAN CRUISES LTD Debt Disclosure
Long-Term Debt
Long-term debt consists of the following (in thousands):
2017 | 2016 | ||||||
$1.4 billion unsecured revolving credit facility, LIBOR plus 1.175%, currently 2.64% and a facility fee of 0.20%, due 2020 | $ | 300,000 | $ | 925,000 | |||
$1.2 billion unsecured revolving credit facility, LIBOR plus 1.175%, currently 2.58% and a facility fee of 0.20%, due 2022 | 280,000 | 805,000 | |||||
Unsecured senior notes and senior debentures, 2.65% to 7.50%, due 2018, 2020, 2022, 2027 and 2028 | 1,866,359 | 1,073,261 | |||||
$200 million unsecured term loan, LIBOR plus 1.30% | — | 200,000 | |||||
$841.8 million unsecured term loan, LIBOR plus 1.00%, currently 2.52% due through 2028 | 736,604 | 806,756 | |||||
$226.1 million unsecured term loan, 2.53%, due through 2028 | 197,837 | 216,677 | |||||
€700.7 million unsecured term loan, EURIBOR plus 1.15% currently 1.15%, due through 2028 | 736,020 | 708,417 | |||||
$742.1 million unsecured term loan, LIBOR plus 1.30%, currently 2.81%, due through 2027 | 587,497 | 649,338 | |||||
$273.2 million unsecured term loan, LIBOR plus 1.75% | — | 273,166 | |||||
$519 million unsecured term loan, LIBOR plus 0.45%, currently 2.00%, due through 2020 | 129,786 | 173,049 | |||||
$420 million unsecured term loan, 5.41%, due through 2021 | 135,514 | 171,444 | |||||
$420 million unsecured term loan, LIBOR plus 1.65%, currently 3.21%, due through 2021 | 140,000 | 175,000 | |||||
€159.4 million unsecured term loan, EURIBOR plus 1.58%, currently 1.58%, due through 2021 | 63,798 | 70,082 | |||||
$524.5 million unsecured term loan, LIBOR plus 0.50%, currently 1.96%, due through 2021 | 174,833 | 218,542 | |||||
$566.1 million unsecured term loan, LIBOR plus 0.37%, currently 1.90%, due through 2022 | 212,276 | 259,448 | |||||
$1.1 billion unsecured term loan, LIBOR plus 1.65%, currently 3.21%, due through 2022 | 345,877 | 460,652 | |||||
$632.0 million unsecured term loan, LIBOR plus 0.40%, currently 1.86%, due through 2023 | 315,979 | 368,643 | |||||
$673.5 million unsecured term loan, LIBOR plus 0.40%, currently 1.92%, due through 2024 | 392,860 | 448,983 | |||||
$65.0 million unsecured term loan, LIBOR plus 1.45%, currently 3.02%, due through 2019 | 65,227 | 67,027 | |||||
$380.0 million unsecured term loan, LIBOR plus 1.45%, currently 3.02%, due 2018 | 380,000 | 380,000 | |||||
$791.1 million unsecured term loan, LIBOR plus 1.30%, currently 2.85%, due through 2026 | 593,331 | 659,256 | |||||
$290.0 million unsecured term loan, LIBOR plus 1.75% | — | 290,000 | |||||
€365 million unsecured term loan, EURIBOR plus 1.75% | — | 123,963 | |||||
$7.3 million unsecured term loan, LIBOR plus 2.5% | — | 3,964 | |||||
$30.3 million unsecured term loan, LIBOR plus 3.75%, currently 5.29%, due through 2021 | 5,400 | 6,597 | |||||
€80.0 million unsecured term loan, EURIBOR plus 1.32% currently 1.32%, due through 2024 | 14,267 | — | |||||
Capital lease obligations | 33,139 | 40,385 | |||||
Total debt | 7,706,604 | 9,574,650 | |||||
Less: unamortized debt issuance costs | (167,153 | ) | (187,214 | ) | |||
Total debt, net of unamortized debt issuance costs | 7,539,451 | 9,387,436 | |||||
Less: current portion | (1,188,514 | ) | (1,285,735 | ) | |||
Long-term portion | $ | 6,350,937 | $ | 8,101,701 | |||
In October 2017, we amended and restated our $1.2 billion unsecured revolving credit facility due August 2018. The amendment reduced the applicable margin and extended the termination date to October 2022. The applicable margin and facility fee vary with our debt rating and are currently 1.175% and 0.20%, respectively. In December 2017, we also amended and restated our $1.4 billion unsecured revolving credit facility due June 2020 to reduce pricing in line with the amended pricing of the $1.2 billion unsecured revolving credit facility. These amendments did not result in the extinguishment of debt. Accordingly, as of December 31, 2017, we have an aggregate revolving borrowing capacity of $2.6 billion.
In November 2017, we issued $300 million of 2.65% and $500 million of 3.70% unsecured senior notes due 2020 and 2028, respectively, at 99.977% and 99.623% of par, respectively. Amounts from the issuance of these notes were used for general corporate purposes, such as repayment and refinancing of debt.
In November 2017, we entered into a credit agreement which provides an unsecured term loan facility in an amount up to €80.0 million, or approximately $96.0 million based on the exchange rate at December 31, 2017, for the purchase of a ship we have on order designed for the Galapagos Islands. We may draw up to five times under the facility through the earlier of the delivery of the ship and June 30, 2019. As of December 31, 2017, we have drawn €11.9 million, or approximately $14.3 million based on the exchange rate at December 31, 2017, on this facility. The loan is due and payable at maturity in November 2024. Interest on the loan accrues at a floating rate based on EURIBOR plus the applicable margin. The applicable margin varies with our debt rating and was 1.32% as of December 31, 2017. In addition, we are subject to a commitment fee of 0.20% per annum on the undrawn amount.
Except as described above, all of our unsecured ship financing term loans are guaranteed by the export credit agency in the respective country in which the ship is constructed. In consideration for these guarantees, depending on the financing arrangement, we pay to the applicable export credit agency (1) a fee of 1.01% per annum based on the outstanding loan balance semi-annually over the term of the loan (subject to adjustment based upon our credit ratings) or (2) an upfront fee of 2.35% to 2.37% of the maximum loan amount. We amortize the fees that are paid upfront over the life of the loan and those that are paid semi-annually over each respective payment period. We classify these fees within Amortization of debt issuance costs in our consolidated statements of cash flows and within Other assets in our consolidated balance sheets.
Under certain of our agreements, the contractual interest rate, facility fee and/or export credit agency fee vary with our debt rating.
The unsecured senior notes and senior debentures are not redeemable prior to maturity, except that certain series may be redeemed upon the payment of a make-whole premium.
Following is a schedule of annual maturities on long-term debt including capital leases as of December 31, 2017 for each of the next five years (in thousands):
Year | |||
2018 | $ | 1,188,514 | |
2019 | 762,614 | ||
2020 | 1,292,478 | ||
2021 | 640,734 | ||
2022 | 1,380,583 | ||
Thereafter | 2,274,528 | ||
$ | 7,539,451 | ||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2017 | Feb 21, 2018 | Showing above |
| 2016 | Feb 23, 2017 | |
| 2015 | Feb 22, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.