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Royal Caribbean secures agreement for $700m loan

Royal Caribbean Group has secured a commitment from US bank Morgan Stanley for a $700 million loan facility.

The cruise giant may draw on the facility at any time before August 12, 2021.

It can increase the loan by an additional $300 million from time to time, subject to the receipt of additional or increased commitments.

The company expects to use the net proceeds for general corporate purposes.

On Monday (August 10), Royal Caribbean Group posted a second-quarter net loss of $1.6 billion.

In May 2020, it posted a first-quarter loss of $1.4 billion.

The parent company of Royal Caribbean International, Celebrity Cruises, Azamara and Silversea paused operations amid the global Covid-19 pandemic on March 13.

Royal Caribbean Group estimates its cash burn to be between $250 million to $290 million per month during the suspension of operations.

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