Extensions through 2021
These amendments extend RCL’s waiver of the quarterly-tested fixed charge coverage and net debt to capitalization covenants in each credit facility through 2021 and increase the monthly-tested minimum liquidity covenant for the duration of the extended waiver period.
With these amendments, the restrictions on paying cash dividends and effectuating share repurchases during the wavier period were extended through 2021. In addition, the amendments incorporate the restrictions on investments in the indentures governing the company’s 9.125% senior guaranteed notes due 2023, 10.875% senior secured notes due 2023 and 11.5% senior secured notes due 2025.
Nordea Bank, New York Branch is administrative agent for the $1.55bn facility, the Bank of Nova Scotia is administrative agent for the $1.925bn credit facility and Bank of America, NA is administrative agent for the $1bn loan.
Waivers extended for export-credit loans
RCL also entered into a financial covenant waiver extension consent letter with KfW IPEX-Bank amend the company’s Hermes-backed loan facilities, including those to finance Quantum of the Seas, Anthem of the Seas, Ovation of the Seas, Spectrum of the Seas and Odyssey of the Seas, and the BpiFAE-backed loan facilities to finance Celebrity Edge, Celebrity Apex and Symphony of the Seas.
In each case, the waiver extends the period during which a breach of financial covenants will not trigger a mandatory prepayment or default under each facility through 2021.
Similarly, RCL amended the Finnvera-backed loan facilities incurred to finance Icon 1, Icon 2 and Icon 3 to extend the period during which a breach of the financial covenants will not trigger a default under each facility through 2021, as long as certain structural enhancements are provided by the end of this September.
In connection with these consents and amendments, RCL agreed that certain subsidiaries — none directly owning a vessel — will issue guarantees for the debt outstanding under the export credit facilities.