QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Republic of | ||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Accelerated filer ☐ | Non-accelerated filer ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | |||||
Quarter Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues | $ | $ | |||||||||
Onboard and other revenues | |||||||||||
Total revenues | |||||||||||
Cruise operating expenses: | |||||||||||
Commissions, transportation and other | |||||||||||
Onboard and other | |||||||||||
Payroll and related | |||||||||||
Food | |||||||||||
Fuel | |||||||||||
Other operating | |||||||||||
Total cruise operating expenses | |||||||||||
Marketing, selling and administrative expenses | |||||||||||
Depreciation and amortization expenses | |||||||||||
Impairment and credit losses | |||||||||||
Operating (Loss) Income | ( | ||||||||||
Other income (expense): | |||||||||||
Interest income | |||||||||||
Interest expense, net of interest capitalized | ( | ( | |||||||||
Equity investment (loss) income | ( | ||||||||||
Other expense | ( | ( | |||||||||
( | ( | ||||||||||
Net (Loss) Income | ( | ||||||||||
Less: Net Income attributable to noncontrolling interest | |||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ | ||||||||
(Loss) Earnings per Share: | |||||||||||
Basic | $ | ( | $ | ||||||||
Diluted | $ | ( | $ | ||||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Comprehensive (Loss) Income | |||||||||||
Net (Loss) Income | $ | ( | $ | ||||||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments | |||||||||||
Change in defined benefit plans | ( | ( | |||||||||
(Loss) gain on cash flow derivative hedges | ( | ||||||||||
Total other comprehensive (loss) income | ( | ||||||||||
Comprehensive (Loss) Income | ( | ||||||||||
Less: Comprehensive Income attributable to noncontrolling interest | |||||||||||
Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | ( | $ |
As of | |||||||||||
March 31, | December 31, | ||||||||||
2020 | 2019 | ||||||||||
(unaudited) | |||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade and other receivables, net | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other assets | |||||||||||
Derivative financial instruments | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities, Redeemable Noncontrolling Interest and Shareholders’ Equity | |||||||||||
Current liabilities | |||||||||||
Current portion of debt | $ | $ | |||||||||
Commercial paper | |||||||||||
Current portion of operating lease liabilities | |||||||||||
Accounts payable | |||||||||||
Accrued interest | |||||||||||
Accrued expenses and other liabilities | |||||||||||
Derivative financial instruments | |||||||||||
Customer deposits | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Long-term operating lease liabilities | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 10) | |||||||||||
Redeemable noncontrolling interest | |||||||||||
Shareholders’ equity | |||||||||||
Preferred stock ($ | |||||||||||
Common stock ($ | |||||||||||
Paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Treasury stock ( | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities, redeemable noncontrolling interest and shareholders’ equity | $ | $ |
Three Months Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Operating Activities | |||||||||||
Net (Loss) Income | $ | ( | $ | ||||||||
Adjustments: | |||||||||||
Depreciation and amortization | |||||||||||
Impairment and credit losses | |||||||||||
Net deferred income tax expense | |||||||||||
Loss (gain) on derivative instruments not designated as hedges | ( | ||||||||||
Share-based compensation (income) expense | ( | ||||||||||
Equity investment loss (income) | ( | ||||||||||
Amortization of debt issuance costs | |||||||||||
Amortization of commercial paper notes discount | |||||||||||
Change in fair value of contingent consideration | ( | ||||||||||
Changes in operating assets and liabilities: | |||||||||||
Decrease (increase) in trade and other receivables, net | ( | ||||||||||
Increase in inventories | ( | ( | |||||||||
Decrease (increase) in prepaid expenses and other assets | ( | ||||||||||
Increase in accounts payable | |||||||||||
Increase in accrued interest | |||||||||||
Increase (decrease) in accrued expenses and other liabilities | ( | ||||||||||
(Decrease) increase in customer deposits | ( | ||||||||||
Dividends received from unconsolidated affiliates | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
Investing Activities | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Cash received on settlement of derivative financial instruments | |||||||||||
Cash paid on settlement of derivative financial instruments | ( | ( | |||||||||
Investments in and loans to unconsolidated affiliates | ( | ||||||||||
Cash received on loans to unconsolidated affiliates | |||||||||||
Proceeds from the sale of property and equipment | |||||||||||
Other, net | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing Activities | |||||||||||
Debt proceeds | |||||||||||
Debt issuance costs | ( | ( | |||||||||
Repayments of debt | ( | ( | |||||||||
Proceeds from issuance of commercial paper notes | |||||||||||
Repayments of commercial paper notes | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Proceeds from exercise of common stock options | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by (used in) financing activities | ( | ||||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental Disclosure | |||||||||||
Cash paid during the period for: | |||||||||||
Interest, net of amount capitalized | $ | $ | |||||||||
Non-cash Investing Activities | |||||||||||
Notes receivable issued upon sale of property and equipment | $ | $ | |||||||||
Purchase of property and equipment included in accounts payable and accrued expenses and other liabilities | $ | $ | |||||||||
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | ( | — | — | — | ( | ||||||||||||||||||||||||||||||
Common stock dividends, $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Purchases of treasury stock | — | — | — | ( | ( | ||||||||||||||||||||||||||||||
Net Loss attributable to Royal Caribbean Cruises Ltd. | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ | ( | $ | ( | $ |
Common Stock | Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Treasury Stock | Total Shareholders' Equity | ||||||||||||||||||||||||||||||
Balance at January 1, 2019 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
Activity related to employee stock plans | — | — | — | ||||||||||||||||||||||||||||||||
Common stock dividends, $ | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | — | — | — | — | |||||||||||||||||||||||||||||||
Change in defined benefit plans | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Foreign currency translation adjustments | — | — | — | — | |||||||||||||||||||||||||||||||
Net Income attributable to Royal Caribbean Cruises Ltd. | — | — | — | — | |||||||||||||||||||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | $ | ( | $ | ( | $ |
Royal Caribbean International | Celebrity Cruises | Silversea Cruises | Total | ||||||||||||||||||||
Balance at December 31, 2019 | $ | $ | $ | $ | |||||||||||||||||||
Impairment charge | ( | ( | |||||||||||||||||||||
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | ( | ||||||||||||||||||||||
Foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Balance at March 31, 2020 | $ | $ | $ | $ |
March 31, 2020 | ||||||||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Accumulated Impairment losses | Net Carrying Value | |||||||||||||||||||||||
Finite-life intangible assets: | ||||||||||||||||||||||||||
Customer relationships | $ | $ | $ | $ | ||||||||||||||||||||||
Galapagos operating license | ||||||||||||||||||||||||||
Other finite-life intangible assets | ||||||||||||||||||||||||||
Total finite-life intangible assets | ||||||||||||||||||||||||||
Indefinite-life intangible assets | — | |||||||||||||||||||||||||
Total intangible assets, net | $ | $ | $ | $ |
December 31, 2019 | ||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Net Carrying Value | ||||||||||||||||||
Finite-life intangible assets: | ||||||||||||||||||||
Customer relationships | $ | $ | $ | |||||||||||||||||
Galapagos operating license | ||||||||||||||||||||
Other finite-life intangible assets | ||||||||||||||||||||
Total finite-life intangible assets | ||||||||||||||||||||
Indefinite-life intangible assets | — | |||||||||||||||||||
Total intangible assets, net | $ | $ | $ |
Quarter Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Revenues by itinerary | |||||||||||
North America(1) | $ | $ | |||||||||
Asia/Pacific(2) | |||||||||||
Europe(3) | |||||||||||
Other regions(4) | |||||||||||
Total revenues by itinerary | |||||||||||
Other revenues(5) | |||||||||||
Total revenues | $ | $ |
Quarter Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Passenger ticket revenues: | |||||||||||
United States | % | % | |||||||||
Australia | % | % | |||||||||
All other countries (1) | % | % |
Quarter Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. for basic and diluted earnings per share | $ | ( | $ | ||||||||
Weighted-average common shares outstanding | |||||||||||
Dilutive effect of stock-based awards | |||||||||||
Diluted weighted-average shares outstanding | |||||||||||
Basic (loss) earnings per share | $ | ( | $ | ||||||||
Diluted (loss) earnings per share | $ | ( | $ |
Quarter Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Share of equity (loss) income from investments | $ | ( | $ | |||||||||||
Dividends received (1) | $ | $ |
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||
Total notes receivable due from equity investments | $ | $ | ||||||||||||
Less-current portion (1) | ||||||||||||||
Long-term portion (2) | $ | $ |
Quarter Ended March 31, | ||||||||||||||
2020 | 2019 | |||||||||||||
Revenues | $ | $ | ||||||||||||
Expenses | $ | $ |
Interest Rate (1) | Maturities Through | Quarter ended March 31, 2020 | Year ended December 31, 2019 | |||||||||||||||||||||||
Fixed rate debt: | ||||||||||||||||||||||||||
Unsecured senior notes | 2020 - 2028 | $ | $ | |||||||||||||||||||||||
Secured senior notes | 2025 | |||||||||||||||||||||||||
Unsecured term loans | 2021 - 2032 | |||||||||||||||||||||||||
Total fixed rate debt | ||||||||||||||||||||||||||
Variable rate debt: | ||||||||||||||||||||||||||
Unsecured revolving credit facilities (2) | 2022 - 2024 | |||||||||||||||||||||||||
Commercial paper | 2020 | |||||||||||||||||||||||||
USD secured term loan | 2021 | |||||||||||||||||||||||||
USD unsecured term loan | 2020 - 2028 | |||||||||||||||||||||||||
Euro unsecured term loan | 2021 - 2028 | |||||||||||||||||||||||||
Total variable rate debt | ||||||||||||||||||||||||||
Finance lease liabilities | ||||||||||||||||||||||||||
Total debt (3) | ||||||||||||||||||||||||||
Less: unamortized debt issuance costs | ( | ( | ||||||||||||||||||||||||
Total debt, net of unamortized debt issuance costs | ||||||||||||||||||||||||||
Less—current portion including commercial paper | ( | ( | ||||||||||||||||||||||||
Long-term portion | $ | $ |
Year | |||||
Remainder of 2020 | |||||
2021 | |||||
2022 | |||||
2023 | |||||
2024 | |||||
Thereafter | |||||
Consolidated Statement of Comprehensive Income (Loss) Classification | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | ||||||||||||
Lease costs: | ||||||||||||||
Operating lease costs | Commission, transportation and other | $ | $ | |||||||||||
Operating lease costs | Other operating expenses | |||||||||||||
Operating lease costs | Marketing, selling and administrative expenses | |||||||||||||
Financial lease costs: | ||||||||||||||
Amortization of right-of-use-assets | Depreciation and amortization expenses | |||||||||||||
Interest on lease liabilities | Interest expense, net of interest capitalized | |||||||||||||
Total lease costs | $ | $ |
As of March 31, 2020 | ||||||||
Weighted average of the remaining lease term | ||||||||
Operating leases | ||||||||
Finance leases | ||||||||
Weighted average discount rate | ||||||||
Operating leases | % | |||||||
Finance leases | % |
Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||||||
Operating cash flows from operating leases | $ | $ | ||||||
Operating cash flows from finance leases | $ | $ | ||||||
Financing cash flows from finance leases | $ | $ | ||||||
Year | Operating Leases | Finance Leases | |||||||||
Remainder of 2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: Interest | ( | ( | |||||||||
Present value of lease liabilities | $ | $ |
Beginning balance January 1, 2019 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Distribution to noncontrolling interest | ( | ||||
Balance at December 31, 2019 | $ | ||||
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | |||||
Ending balance March 31, 2020 | $ |
Ship | Shipyard | Contractual Delivery Dates | Approximate Berths | |||||||||||||||||
Royal Caribbean International — | ||||||||||||||||||||
Oasis-class: | ||||||||||||||||||||
Wonder of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2021 | ||||||||||||||||||
Unnamed | Chantiers de l'Atlantique | 4nd Quarter 2023 | ||||||||||||||||||
Quantum-class: | ||||||||||||||||||||
Odyssey of the Seas | Meyer Werft | 4th Quarter 2020 | ||||||||||||||||||
Icon-class: | ||||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2022 | ||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2024 | ||||||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | ||||||||||||||||||
Celebrity Cruises — | ||||||||||||||||||||
Edge-class: | ||||||||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 4th Quarter 2021 | ||||||||||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2022 | ||||||||||||||||||
Silversea Cruises — | ||||||||||||||||||||
Silver Origin | De Hoop | 2nd Quarter 2020 | ||||||||||||||||||
Muse-Class: | ||||||||||||||||||||
Silver Moon | Fincantieri | 3rd Quarter 2020 | ||||||||||||||||||
Silver Dawn | Fincantieri | 3rd Quarter 2021 | ||||||||||||||||||
Evolution Class: | ||||||||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2022 | ||||||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2023 | ||||||||||||||||||
TUI Cruises (50% joint venture) (2)— | ||||||||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2023 | ||||||||||||||||||
Unnamed | Fincantieri | 3rd Quarter 2024 | ||||||||||||||||||
Unnamed | Fincantieri | 1st Quarter 2026 | ||||||||||||||||||
Total Berths |
Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2020 | Accumulated Other Comprehensive Income (Loss) for the Quarter Ended March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | Changes related to cash flow derivative hedges | Changes in defined benefit plans | Foreign currency translation adjustments | Accumulated other comprehensive loss | ||||||||||||||||||||||||||||||||||||||||
Accumulated comprehensive loss at beginning of the year | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive loss | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | ||||||||||||||||||||
Details About Accumulated Other Comprehensive Income (Loss) Components | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | Affected Line Item in Statements of Comprehensive Income (Loss) | |||||||||||||||||
Gain (loss) on cash flow derivative hedges: | ||||||||||||||||||||
Interest rate swaps | $ | ( | $ | ( | Interest expense, net of interest capitalized | |||||||||||||||
Foreign currency forward contracts | ( | ( | Depreciation and amortization expenses | |||||||||||||||||
Foreign currency forward contracts | ( | ( | Other income (expense) | |||||||||||||||||
Fuel swaps | ( | Other income (expense) | ||||||||||||||||||
Fuel swaps | ( | Fuel | ||||||||||||||||||
( | ||||||||||||||||||||
Amortization of defined benefit plans: | ||||||||||||||||||||
Actuarial loss | ( | ( | Payroll and related | |||||||||||||||||
( | ( | |||||||||||||||||||
Total reclassifications for the period | $ | ( | $ |
Fair Value Measurements at March 31, 2020 Using | Fair Value Measurements at December 31, 2019 Using | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | Total Carrying Amount | Total Fair Value | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents(4) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term debt (including current portion of debt)(5) | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
Fair Value Measurements at March 31, 2020 Using | Fair Value Measurements at December 31, 2019 Using | |||||||||||||||||||||||||||||||||||||||||||||||||
Description | Total | Level 1(1) | Level 2(2) | Level 3(3) | Total | Level 1(1) | Level 2(2) | Level 3(3) | ||||||||||||||||||||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(4) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Total Assets | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative financial instruments(5) | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Contingent consideration (6) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total Liabilities | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements at March 31, 2020 Using | ||||||||||||||
Description | Total Carrying Amount | Total Fair Value | Level 3 | Total Impairment | ||||||||||
Silversea Cruises Goodwill (1) | $ | $ | $ | $ | ||||||||||
Indefinite-life intangible asset (2) | $ | $ | $ | $ | ||||||||||
Long-lived assets - vessels(3) | $ | $ | $ | $ | ||||||||||
Right-of-use assets(4) | $ | $ | $ | $ | ||||||||||
Equity-method investments(5) | $ | |||||||||||||
Total | $ | $ | $ | $ |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Received | Net Amount of Derivative Assets | Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Received | Net Amount of Derivative Assets | |||||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | $ | $ | ( | $ | $ |
Gross Amounts not Offset in the Consolidated Balance Sheet that are Subject to Master Netting Agreements | ||||||||||||||||||||||||||||||||||||||||||||||||||
As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Assets | Cash Collateral Pledged | Net Amount of Derivative Liabilities | Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | Cash Collateral Pledged | Net Amount of Derivative Liabilities | |||||||||||||||||||||||||||||||||||||||||||
Derivatives subject to master netting agreements | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | ( | $ | ( | $ | $ | $ | ( |
Debt Instrument | Swap Notional as of March 31, 2020 (In thousands) | Maturity | Debt Fixed Rate | Swap Floating Rate: LIBOR plus | All-in Swap Floating Rate as of March 31, 2020 | ||||||||||||
Oasis of the Seas term loan | $ | October 2021 | |||||||||||||||
Unsecured senior notes | November 2022 | ||||||||||||||||
$ |
Debt Instrument | Swap Notional as of March 31, 2020 (In thousands) | Maturity | Debt Floating Rate | All-in Swap Fixed Rate | |||||||||||||
Celebrity Reflection term loan | $ | October 2024 | LIBOR plus | ||||||||||||||
Quantum of the Seas term loan | October 2026 | LIBOR plus | |||||||||||||||
Anthem of the Seas term loan | April 2027 | LIBOR plus | |||||||||||||||
Ovation of the Seas term loan | April 2028 | LIBOR plus | |||||||||||||||
Harmony of the Seas term loan (1) | May 2028 | EURIBOR plus | |||||||||||||||
Odyssey of the Seas term loan (2) | October 2032 | LIBOR plus | |||||||||||||||
Odyssey of the Seas term loan (2) | October 2032 | LIBOR plus | |||||||||||||||
$ |
Fuel Swap Agreements | |||||||||||
As of March 31, 2020 | As of December 31, 2019 | ||||||||||
(metric tons) | |||||||||||
2020(1) | |||||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
Fuel Swap Agreements | |||||||||||
As of March 31, 2020 | As of December 31, 2019 | ||||||||||
(% hedged) | |||||||||||
Projected fuel purchases: | |||||||||||
2020 | % | % | |||||||||
2021 | % | % | |||||||||
2022 | % | % | |||||||||
2023 | % | % | |||||||||
Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||||||||||||||||||||||||||||
Balance Sheet Location | As of March 31, 2020 | As of December 31, 2019 | Balance Sheet Location | As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||||||||||||
Fair Value | Fair Value | Fair Value | Fair Value | |||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments under ASC 815-20(1) | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps | Other assets | $ | $ | Other long-term liabilities | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Other assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments under 815-20 | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments under ASC 815-20 | ||||||||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Derivative financial instruments | $ | $ | Derivative financial instruments | $ | $ | ||||||||||||||||||||||||||||||||
Foreign currency forward contracts | Other assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Derivative financial instruments | Derivative financial instruments | ||||||||||||||||||||||||||||||||||||
Fuel swaps | Other Assets | Other long-term liabilities | ||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments under 815-20 | ||||||||||||||||||||||||||||||||||||||
Total derivatives | $ | $ | $ | $ |
Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | Fuel Expense | Depreciation and Amortization Expenses | Interest Income (Expense) | Other Income (Expense) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded | $ | $ | $( | $( | $ | $ | $( | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
The effects of fair value and cash flow hedging: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Hedged items | n/a | n/a | $( | $ | n/a | n/a | ( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments | n/a | n/a | $ | $ | n/a | n/a | $( | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | n/a | n/a | $( | n/a | n/a | n/a | $( | n/a | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | $( | n/a | n/a | $ | $ | n/a | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of gain or (loss) reclassified from accumulated other comprehensive income (loss) into income | n/a | $( | n/a | $( | n/a | $( | n/a | $( | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Value | ||||||||||||||||||||
Non-derivative instrument designated as hedging instrument under ASC 815-20 | Balance Sheet Location | As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||
Foreign currency debt | Current portion of debt | $ | $ | |||||||||||||||||
Foreign currency debt | Long-term debt | |||||||||||||||||||
$ | $ |
Derivatives and Related Hedged Items under ASC 815-20 Fair Value Hedging Relationships | Location of Gain (Loss) Recognized in Income on Derivative and Hedged Item | Amount of Gain (Loss) Recognized in Income on Derivative | Amount of Gain (Loss) Recognized in Income on Hedged Item | |||||||||||||||||||||||||||||
Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | |||||||||||||||||||||||||||||
Interest rate swaps | Interest expense, net of interest capitalized | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||||||||||
Interest rate swaps | Other income (expense) | |||||||||||||||||||||||||||||||
$ | $ | $ | ( | $ | ( |
Line Item in the Statement of Financial Position Where the Hedged Item is Included | Carrying Amount of the Hedged Liabilities | Cumulative amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liabilities | ||||||||||||||||||||||||
As of March 31, 2020 | As of December 31, 2019 | As of March 31, 2020 | As of December 31, 2019 | |||||||||||||||||||||||
Current portion of debt and Long-term debt | $ | $ | $ | $ | ( | |||||||||||||||||||||
$ | $ | $ | $ | ( |
Derivatives under ASC 815-20 Cash Flow Hedging Relationships | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Income (Loss) on Derivative | Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | |||||||||||||||||||||||||||||
Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | |||||||||||||||||||||||||||||
Interest rate swaps | $ | ( | $ | ( | Interest expense, net of interest capitalized | $ | ( | $ | ( | |||||||||||||||||||||||
Foreign currency forward contracts | ( | ( | Depreciation and amortization expenses | ( | ( | |||||||||||||||||||||||||||
Foreign currency forward contracts | Other income (expense) | ( | ( | |||||||||||||||||||||||||||||
Fuel swaps | Other income (expense) | ( | ||||||||||||||||||||||||||||||
Fuel swaps | ( | Fuel | ( | |||||||||||||||||||||||||||||
$ | ( | $ | $ | ( | $ |
Gain (Loss) Recognized in Income (Net Investment Excluded Components) | Three Months Ended March 31, 2020 | |||||||
Net inception fair value at January 1, 2020 | $ | ( | ||||||
Amount of gain recognized in income on derivatives for the period ended March 31, 2020 | ||||||||
Amount of gain (loss) remaining to be amortized in accumulated other comprehensive loss, as of March 31, 2020 | ||||||||
Fair value at March 31, 2020 | $ | ( |
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | ||||||||||||||
Non-derivative instruments under ASC 815-20 Net Investment Hedging Relationships | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | ||||||||||||
Foreign Currency Debt | $ | $ | ||||||||||||
$ | $ |
Amount of Gain (Loss) Recognized in Income on Derivatives | ||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments under ASC 815-20 | Location of Gain (Loss) Recognized in Income on Derivatives | Quarter Ended March 31, 2020 | Quarter Ended March 31, 2019 | |||||||||||||||||
Foreign currency forward contracts | Other income (expense) | $ | ( | $ | ||||||||||||||||
Fuel swaps | Fuel | ( | ||||||||||||||||||
Fuel swaps | Other income (expense) | ( | ( | |||||||||||||||||
$ | ( | $ |
Beginning balance January 1, 2020 | Accruals | Payments | Ending balance March 31, 2020 | Cumulative Charges Incurred | Expected Additional Expenses to be Incurred | ||||||||||||||||||||||||||||||
Termination benefits | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
Contract termination costs | |||||||||||||||||||||||||||||||||||
Other related costs | |||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
Quarter Ended March 31, | |||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||
% of Total Revenues | % of Total Revenues | ||||||||||||||||||||||
Passenger ticket revenues | $ | 1,376,851 | 67.7 | % | $ | 1,709,984 | 70.1 | % | |||||||||||||||
Onboard and other revenues | 655,899 | 32.3 | % | 729,783 | 29.9 | % | |||||||||||||||||
Total revenues | 2,032,750 | 100.0 | % | 2,439,767 | 100.0 | % | |||||||||||||||||
Cruise operating expenses: | |||||||||||||||||||||||
Commissions, transportation and other | 317,129 | 15.6 | % | 363,155 | 14.9 | % | |||||||||||||||||
Onboard and other | 123,718 | 6.1 | % | 135,170 | 5.5 | % | |||||||||||||||||
Payroll and related | 330,390 | 16.3 | % | 269,532 | 11.0 | % | |||||||||||||||||
Food | 121,316 | 6.0 | % | 139,534 | 5.7 | % | |||||||||||||||||
Fuel | 194,268 | 9.6 | % | 160,171 | 6.6 | % | |||||||||||||||||
Other operating | 423,998 | 20.9 | % | 346,142 | 14.2 | % | |||||||||||||||||
Total cruise operating expenses | 1,510,819 | 74.3 | % | 1,413,704 | 57.9 | % | |||||||||||||||||
Marketing, selling and administrative expenses | 395,890 | 19.5 | % | 414,947 | 17.0 | % | |||||||||||||||||
Depreciation and amortization expenses | 324,330 | 16.0 | % | 292,285 | 12.0 | % | |||||||||||||||||
Impairment and credit losses | 1,108,118 | 54.5 | % | — | — | % | |||||||||||||||||
Operating (Loss) Income | (1,306,407) | (64.3) | % | 318,831 | 13.1 | % | |||||||||||||||||
Other (expense) income: | |||||||||||||||||||||||
Interest income | 5,534 | 0.3 | % | 9,784 | 0.4 | % | |||||||||||||||||
Interest expense, net of interest capitalized | (92,911) | (4.6) | % | (100,415) | (4.1) | % | |||||||||||||||||
Equity investment (loss) income | (10,392) | (0.5) | % | 33,694 | 1.4 | % | |||||||||||||||||
Other expense | (32,859) | (1.6) | % | (5,088) | (0.2) | % | |||||||||||||||||
(130,628) | (6.4) | % | (62,025) | (2.5) | % | ||||||||||||||||||
Net (Loss) Income | (1,437,035) | (70.7) | % | 256,806 | 10.5 | % | |||||||||||||||||
Less: Net Income attributable to noncontrolling interest | 7,444 | 0.4 | % | 7,125 | 0.3 | % | |||||||||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | (1,444,479) | (71.1) | % | $ | 249,681 | 10.2 | % | |||||||||||||||
Diluted (Loss) Earnings per Share | $ | (6.91) | $ | 1.19 |
Quarter Ended March 31, | |||||||||||
2020 | 2019 | ||||||||||
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | (1,444,479) | $ | 249,681 | |||||||
Adjusted Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | (310,412) | 275,847 | |||||||||
Net Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | 1,134,067 | $ | 26,166 | |||||||
Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd.: | |||||||||||
Impairment and credit losses (1) | $ | 1,108,118 | $ | — | |||||||
Equity investment impairment (2) | 39,735 | — | |||||||||
Change in fair value of the Silversea contingent consideration (3) | (51,019) | — | |||||||||
Net insurance recoveries of Oasis of the Seas incident (4) | (1,938) | — | |||||||||
Restructuring charges and other initiatives expense (5) | 12,043 | — | |||||||||
Amortization of Silversea Cruises intangible assets resulting from the acquisition (3) | 3,069 | 3,069 | |||||||||
Noncontrolling interest adjustment (6) | 24,059 | 21,911 | |||||||||
Transaction costs related to Silversea acquisition (3) | — | 1,186 | |||||||||
Net Adjustments to Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ | 1,134,067 | $ | 26,166 | |||||||
Basic: | |||||||||||
(Loss) Earnings per Share | $ | (6.91) | $ | 1.19 | |||||||
Adjusted (Loss) Earnings per Share | $ | (1.48) | $ | 1.32 | |||||||
Diluted: | |||||||||||
(Loss) Earnings per Share | $ | (6.91) | $ | 1.19 | |||||||
Adjusted (Loss) Earnings per Share | $ | (1.48) | $ | 1.31 | |||||||
Weighted-Average Shares Outstanding: | |||||||||||
Basic | 209,097 | 209,322 | |||||||||
Diluted | 209,097 | 209,874 |
Quarter Ended March 31, (1) | |||||||||||
2020 | 2019 | ||||||||||
Passengers Carried | 1,239,817 | 1,533,226 | |||||||||
Passenger Cruise Days | 8,467,106 | 10,561,817 | |||||||||
APCD | 8,217,133 | 9,860,600 | |||||||||
Occupancy | 103.0 | % | 107.1 | % |
Quarter Ended March 31, | |||||||||||||||||
2020 | 2020 On a Constant Currency Basis | 2019 | |||||||||||||||
Passenger ticket revenues | $ | 1,376,851 | $ | 1,391,923 | $ | 1,709,984 | |||||||||||
Onboard and other revenues | 655,899 | 662,465 | 729,783 | ||||||||||||||
Total revenues | 2,032,750 | 2,054,388 | 2,439,767 | ||||||||||||||
Less: | |||||||||||||||||
Commissions, transportation and other | 317,129 | 320,131 | 363,155 | ||||||||||||||
Onboard and other | 123,718 | 124,119 | 135,170 | ||||||||||||||
Net Revenues | $ | 1,591,903 | $ | 1,610,138 | $ | 1,941,442 | |||||||||||
APCD | 8,217,133 | 8,217,133 | 9,860,600 | ||||||||||||||
Gross Yields | $ | 247.38 | $ | 250.01 | $ | 247.43 | |||||||||||
Net Yields | $ | 193.73 | $ | 195.95 | $ | 196.89 |
Quarter Ended March 31, | |||||||||||||||||
2020 | 2020 On a Constant Currency Basis | 2019 | |||||||||||||||
Total cruise operating expenses | $ | 1,510,819 | $ | 1,519,124 | $ | 1,413,704 | |||||||||||
Marketing, selling and administrative expenses (1) (2) | 383,847 | 385,694 | 413,761 | ||||||||||||||
Gross Cruise Costs | 1,894,666 | 1,904,818 | 1,827,465 | ||||||||||||||
Less: | |||||||||||||||||
Commissions, transportation and other | 317,129 | 320,131 | 363,155 | ||||||||||||||
Onboard and other | 123,718 | 124,119 | 135,170 | ||||||||||||||
Net Cruise Costs Including Other Costs | 1,453,819 | 1,460,568 | 1,329,140 | ||||||||||||||
Less: | |||||||||||||||||
Net insurance recoveries related to the Oasis of the Seas incident included within cruise operating expenses | (1,580) | (1,580) | — | ||||||||||||||
Net Cruise Costs | 1,455,399 | 1,462,148 | 1,329,140 | ||||||||||||||
Less: | |||||||||||||||||
Fuel (3) | 193,458 | 193,463 | 160,171 | ||||||||||||||
Net Cruise Costs Excluding Fuel | $ | 1,261,941 | $ | 1,268,685 | $ | 1,168,969 | |||||||||||
APCD | 8,217,133 | 8,217,133 | 9,860,600 | ||||||||||||||
Gross Cruise Costs per APCD | $ | 230.58 | $ | 231.81 | $ | 185.33 | |||||||||||
Net Cruise Costs per APCD | $ | 177.12 | $ | 177.94 | $ | 134.79 | |||||||||||
Net Cruise Costs Excluding Fuel per APCD | $ | 153.57 | $ | 154.40 | $ | 118.55 |
Ship | Shipyard | Contractual Delivery Date | Approximate Berths | |||||||||||
Royal Caribbean International — | ||||||||||||||
Oasis-class: | ||||||||||||||
Wonder of the Seas | Chantiers de l'Atlantique | 2nd Quarter 2021 | 5,700 | |||||||||||
Unnamed | Chantiers de l'Atlantique | 4nd Quarter 2023 | 5,700 | |||||||||||
Quantum-class: | ||||||||||||||
Odyssey of the Seas | Meyer Werft | 4th Quarter 2020 | 4,200 | |||||||||||
Icon-class: | ||||||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2022 | 5,600 | |||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2024 | 5,600 | |||||||||||
Unnamed | Meyer Turku Oy | 2nd Quarter 2025 | 5,600 | |||||||||||
Celebrity Cruises — | ||||||||||||||
Edge-class: | ||||||||||||||
Celebrity Beyond | Chantiers de l'Atlantique | 4th Quarter 2021 | 3,250 | |||||||||||
Unnamed | Chantiers de l'Atlantique | 4th Quarter 2022 | 3,250 | |||||||||||
Silversea Cruises — | ||||||||||||||
Silver Origin | De Hoop | 2nd Quarter 2020 | 100 | |||||||||||
Muse-Class: | ||||||||||||||
Silver Moon | Fincantieri | 3rd Quarter 2020 | 550 | |||||||||||
Silver Dawn | Fincantieri | 3rd Quarter 2021 | 550 | |||||||||||
Evolution Class: | ||||||||||||||
Unnamed | Meyer Werft | 1st Quarter 2022 | 600 | |||||||||||
Unnamed | Meyer Werft | 1st Quarter 2023 | 600 | |||||||||||
TUI Cruises (50% joint venture) (2)— | ||||||||||||||
Mein Schiff 7 | Meyer Turku Oy | 2nd Quarter 2023 | 2,900 | |||||||||||
Unnamed | Fincantieri | 3rd Quarter 2024 | 4,100 | |||||||||||
Unnamed | Fincantieri | 1st Quarter 2026 | 4,100 | |||||||||||
Total Berths | 52,400 |
Payments due by period | |||||||||||||||||||||||||||||
Less than | 1-3 | 3-5 | More than | ||||||||||||||||||||||||||
Total | 1 year | years | years | 5 years | |||||||||||||||||||||||||
Operating Activities: | |||||||||||||||||||||||||||||
Operating lease obligations(1) | $ | 915,129 | $ | 127,273 | $ | 219,304 | $ | 168,384 | $ | 400,168 | |||||||||||||||||||
Interest on debt(2) | 2,416,916 | 516,618 | 826,821 | 454,155 | 619,322 | ||||||||||||||||||||||||
Other(3) | 510,721 | 241,783 | 224,488 | 22,347 | 22,103 | ||||||||||||||||||||||||
Investing Activities: | 0 | ||||||||||||||||||||||||||||
Ship purchase obligations(4) | 10,629,536 | 1,551,358 | 4,920,903 | 2,981,077 | 1,176,198 | ||||||||||||||||||||||||
Financing Activities: | 0 | ||||||||||||||||||||||||||||
Commercial paper(5) | 343,557 | 343,557 | — | — | — | ||||||||||||||||||||||||
Debt obligations(6) | 15,458,844 | 3,377,652 | 4,902,203 | 3,361,788 | 3,817,201 | ||||||||||||||||||||||||
Finance lease obligations(7) | 226,471 | 34,342 | 49,605 | 10,601 | 131,923 | ||||||||||||||||||||||||
Other(8) | 19,132 | 6,366 | 9,790 | 2,976 | — | ||||||||||||||||||||||||
Total | $ | 30,520,306 | $ | 6,198,949 | $ | 11,153,114 | $ | 7,001,328 | $ | 6,166,915 |
Period | Total number of shares purchased (1) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Approximate dollar value of shares that may yet be purchased under the plans or programs | ||||||||||
January 1, 2020 - January 31,2020 | — | — | — | $ | 600,000,000 | |||||||||
February 1, 2020 - February 29, 2020 | — | — | — | $ | 600,000,000 | |||||||||
March 1, 2020 - March 31, 2020 | 52,927 | $ | 111.47 | — | $ | 600,000,000 | ||||||||
Total | 52,927 | $ | 111.47 |
* | Filed herewith | |||||||
** | Furnished herewith |
ROYAL CARIBBEAN CRUISES LTD. | ||||||||
(Registrant) | ||||||||
/s/ JASON T. LIBERTY | ||||||||
Jason T. Liberty | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
May 21, 2020 | (Principal Financial Officer and duly authorized signatory) |
Dated 12 March 2020 | ||
HOEDISCUS FINANCE LIMITED as Borrower CHANTIERS DE L’ATLANTIQUE (PREVIOUSLY KNOWN AS STX FRANCE S.A.) as Seller ROYAL CARIBBEAN CRUISES LTD. as Buyer CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Lenders and CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers | ||
FIRST SUPPLEMENTAL AGREEMENT relating to Hull No. L34 at Chantiers de l’Atlantique (previously known as STX France S.A.) |
Clause | Page | |||||||
1 | Definitions | 2 | ||||||
2 | Agreement of the Parties | 3 | ||||||
3 | Amendments to Relevant Documents | 3 | ||||||
4 | Representations and warranties | 4 | ||||||
5 | Conditions | 4 | ||||||
6 | Confirmation of continued effect | 5 | ||||||
7 | Costs and expenses | 5 | ||||||
8 | Miscellaneous and notices | 6 | ||||||
9 | Governing law | 6 | ||||||
Schedule 1 The Lenders | 8 | |||||||
Schedule 2 Documents and evidence required as conditions precedent (referred to in clause 5.1) | 12 | |||||||
Schedule 3 Form of Amended and Restated Facility Agreement | 15 | |||||||
Schedule 4 Form of Amended and Restated Receivable Purchase Agreement | 16 | |||||||
Schedule 5 Form of Amended and Restated Novation Agreement | 17 | |||||||
Schedule 6 Form of Amended and Restated Agency and Trust Deed | 18 | |||||||
Schedule 7 Form of Effective Date certificate | 19 |
Name | Facility Office and contact details | ||||
Banco Santander, S.A, Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | ||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 |
Name | Facility Office and contact details | ||||
35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 | |||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr |
Name | Facility Office and contact details | ||||
Société Générale | Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-dmt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com | ||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne 75008 Paris France Attention: Cedric le Duigou Guillaume Branco Herve Billi Claire Lucien Fax No: +33 1 44 90 48 01 Tel No: Cedric le Duigou: + 33 1 44 90 48 83 Guillaume Branco: + 33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: + 33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com |
Name | Facility Office and contact details | ||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: + 33 1 73 28 85 04 |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a first supplemental agreement dated 12 March 2020) | ||
HOEDISCUS FINANCE LIMITED as Existing Borrower ROYAL CARIBBEAN CRUISES LTD. as New Borrower CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers AND THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Original Lenders | ||
NOVATION AGREEMENT relating to a secured credit facility agreement for Hull No. L34 at Chantiers de l’Atlantique |
Clause | Page | |||||||
1 | Definitions | 2 | ||||||
2 | Consent and agreement of the Finance Parties | 3 | ||||||
3 | Assumption of liability and obligations | 4 | ||||||
4 | Amendment and restatement of Principal Agreement | 5 | ||||||
5 | Loan currency, Additional Advances and undrawn Commitments under the Principal Agreement | 6 | ||||||
6 | Conditions | 8 | ||||||
7 | Fixed rate | 9 | ||||||
8 | Representations and warranties | 9 | ||||||
9 | Covenants | 9 | ||||||
10 | Commitment and cancellation by the New Borrower | 10 | ||||||
11 | Satisfaction of Receivable, releases and BpiFAE Insurance Policy | 12 | ||||||
12 | Assignment and transfers | 13 | ||||||
13 | Miscellaneous and notices | 13 | ||||||
14 | Governing law and jurisdiction | 14 | ||||||
Schedule 1 The Original Lenders | 16 | |||||||
Schedule 2 Conditions precedent | 19 | |||||||
Schedule 3 Form of Novated Credit Agreement | 22 |
Existing Borrower | Walkers London office at present of 6 Gracechurch Street, London EC3V 0AT | ||||
New Borrower | RCL Cruises Ltd., Building 3, The Heights – Brooklands, Weybridge, Surrey, KT13 ONY, Attention: General Counsel |
Original Lender | Facility Office and contact details | Commitment % | ||||||
Banco Santander, S.A. , Paris Branch | 374 rue Saint Honoré 75001 Paris Operational Address: Ciudad Grupo Santander, Avda De Cantabria, 28660 Boadilla del Monte, Madrid, Spain For Credit Matters: Elise Regnault / Ecaterina Mucuta / Andrea Ortiz / Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 Tel No: +34 912893722 / +33 1 53 53 70 46 / +1 6172170157 / +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail: elise.regnault@gruposantander.com ecaterina.mucuta@gruposantander.com andrea.ortiz@santander.us anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com For Operational Matters: Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 / Tel No: +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail:anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com corporativaeuropa@gruposantander.com | 19.5% | ||||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com | 15.7% |
Original Lender | Facility Office and contact details | Commitment % | ||||||
CEDEX 18, OPER/FIN/SMO/EXT | ||||||||
Phone: +33 1 58 98 17 78 / +33 1 58 98 78 | ||||||||
98 | ||||||||
francois.rolland@sgcib.com / | ||||||||
mathieu.chevallier@sgcib.com | ||||||||
For Operational Matters: | ||||||||
Isabelle Guner and Laetitia Perrot | ||||||||
Francois Rolland and Mathieu Chevallier | ||||||||
189, rue d’Aubervilliers, 75886 Paris, | ||||||||
CEDEX 18, OPER/FIN/STR/DMT6 | ||||||||
Phone: +33 1 57 29 20 76 / +33 1 58 98 26 | ||||||||
20 | ||||||||
par-oper-caf-dmt6@sgcib.com | ||||||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly | 10.9% | ||||||
Fax No: +33 1 44 90 48 01 Tel No: | ||||||||
Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 | ||||||||
E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | ||||||||
100 |
By Name: Title: | ||||||||
Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | ||||||||
Commitment | |||||
9.7505744042% of the Maximum Loan Amount | By Name: Title: | ||||
Lending Office: 374 rue Saint Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Ana Sanz Gómez Fax No: +34 91 257 1682 Tel No: +34 912893722 / +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us |
Commitment | |||||
3.9306453494% of the Maximum Loan Amount | By Name: Title: | ||||
BNP PARIBAS Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 |
Commitment | |||||
7.2499999337% of the Maximum Loan Amount | By Name: Title:: | ||||
HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Julie Bellais Celine Karsenty Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / + 33 1 40 70 22 97 Email: julie.bellais@hsbc.fr celine.karesenty@hsbc.fr |
Commitment | |||||
9.9328352929% of the Maximum Loan Amount | By Name: Title: | ||||
Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-dmt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com |
Commitment | |||||
2.7360454163% of the Maximum Loan Amount | By Name: Title: | ||||
1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com |
Commitment | ||||||||
66.3998996035% the Maximum Amount | of Loan | By Name: Title: | ||||||
1-3, rue de Passeur de Boulogne – CS | ||||||||
80054 | ||||||||
92861 Issy-les-Moulineaux Cedex 9 | ||||||||
France | ||||||||
Contact Person | ||||||||
Loan Administration Department: | ||||||||
Direction du Crédit Export: | ||||||||
Pierre-Marie Debreuille / Anne Crépin | ||||||||
Direction des Opérations: | ||||||||
Dominique Brossard / Patrick Sick | ||||||||
Telephone: | ||||||||
Pierre-Marie Debreuille | ||||||||
+33 1 73 28 87 64 | ||||||||
Anne Crépin +33 1 73 28 88 59 | ||||||||
Dominique Brossard +33 1 73 28 91 93 | ||||||||
Patrick Sick +33 1 73 28 87 66 | ||||||||
Email: | ||||||||
pierre-marie.debreuille@sfil.fr | ||||||||
anne.crepin@sfil.fr | ||||||||
dominique.brossard@sfil.fr | ||||||||
patrick.sick@sfil.fr | ||||||||
refinancements-export@sfil.fr | ||||||||
creditexport_ops@sfil.fr | ||||||||
Fax: + 33 1 73 28 85 04 |
By Name: Title: | ||
5th Floor Citigroup Centre Mail drop CGC2 05-65 25 Canada Square Canary Wharf London E14 5LB U.K. Fax no.: +44 20 7492 3980 Attention: EMEA Loans Agency |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a First Supplemental Agreement dated March 2020) | ||
CITIBANK EUROPE PLC, UK BRANCH (1) as Facility Agent CITICORP TRUSTEE COMPANY LIMITED (2) as Security Trustee CITIBANK N.A., LONDON BRANCH (3) as Global Coordinator SUMITOMO MITSUI BANKING CORPORATION (4) EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers (5) THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 (6) as Lendrs and ROYAL CARIBBEAN CRUISES LTD. (7) as Borrower | ||
AGENCY AND TRUST DEED Hull L34 |
Introduction, definitions and interpretation 1 | |||||
Security Trustee 4 | |||||
Declaration of trust: supplementary provisions 12 | |||||
Application of proceeds 14 | |||||
Agents’ and Finance Parties' indemnities 16 | |||||
Custody of deeds; illegality 16 | |||||
Assignments by the Lenders 17 | |||||
Effect of Agreement 17 | |||||
Miscellaneous 17 | |||||
Agreement to provide power of attorney 17 | |||||
Notices and other matters 18 | |||||
Contracts (Rights of Third Parties) Act 1999 18 | |||||
Governing law and jurisdiction 18 | |||||
Schedule 1 The Lenders 19 |
Lender | Facility Office and contact details | Commitment % | ||||||
Banco Santander, S.A. Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | 9.7505744042 | ||||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO | 3.9306453494 |
Lender | Facility Office and contact details | Commitment % | ||||||
MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 | ||||||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr | 7.2499999337 | ||||||
Société Générale | Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France | 9.9328352929 |
Lender | Facility Office and contact details | Commitment % | ||||||
For operational/servicing matters: | ||||||||
Bouchra BOUMEZOUED / Tatiana | ||||||||
BYCHKOVA | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/CAF/DMT6 | ||||||||
Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 | ||||||||
Email: bouchra.boumezoued@sgcib.com | ||||||||
tatiana.bychkova@sgcib.com | ||||||||
par-oper-caf-dmt6@sgcib.com | ||||||||
For credit matters: | ||||||||
Francois Rolland / Tingting Yu / Muriel | ||||||||
Baumann | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/SMO/EXT | ||||||||
Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 | ||||||||
/ +33 1 58 98 22 76 | ||||||||
Email: francois.rolland@sgcib.com | ||||||||
tingting.yu@sgcib.com | ||||||||
muriel.baumann@sgcib.com | ||||||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien | 2.7360454163 | ||||||
Fax No: +33 1 44 90 48 01 | ||||||||
Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 49 | ||||||||
E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com |
Lender | Facility Office and contact details | Commitment % | ||||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: +33 1 73 28 85 04 | 66.3998996035 | ||||||
100 |
Borrower | |||||
SIGNED by Colin Girgenti | |||||
for and on behalf of | /s/ COLIN GIRGENTI | ||||
HOEDISCUS FINANCE LIMITED | Attorney in-fact | ||||
Seller | |||||
SIGNED by Gilles Pinot de Villechenon | |||||
for and on behalf of | /s/ GILLES PINOT DE VILLECHENON | ||||
CHANTIERS DE L’ATLANTIQUE | Attorney in-fact | ||||
Buyer | |||||
SIGNED by Antje M. Gibson | |||||
for and on behalf of | /s/ ANTJE M. GIBSON | ||||
ROYAL CARIBBEAN CRUISES LTD. | Attorney in-fact | ||||
Facility Agent | |||||
SIGNED by Robert Brodie | |||||
for and on behalf of | /s/ ROBERT BRODIE | ||||
Citibank Europe plc, UK Branch | Delegated Signatory | ||||
Security Trustee | |||||
SIGNED by Viola Japaul | |||||
for and on behalf of | /s/ VIOLA JAPAUL | ||||
CITICORP TRUSTEE COMPANY LIMITED | Authorised Signatory | ||||
Global Coordinator | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
French Coordinating Bank | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Authorised Signatory | ||||
HSBC FRANCE | /s/ GUY WOELFEL | ||||
Authorised Signatory | |||||
ECA Agent | |||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
The Lenders | |||||
SIGNED by | /s/ CAROLINE PANTALEAO | ||||
for and on behalf of | Caroline Pantaleao | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Authorised Signatory | ||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | /s/ GEORGES CUREY | ||||
for and on behalf of | Georges Curey | ||||
BNP PARIBAS | Head of Structured Export Finance | ||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
SIGNED by | /s/ BENJAMIN PHILIPPAERTS | ||||
for and on behalf of | Benjamin Philippaerts | ||||
SFIL | Direction Credit Export | ||||
/s/ EMILIE BOISSIER | |||||
Emilie Boissier | |||||
Direction Credit Export | |||||
The Mandated Lead Arrangers | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
SIGNED by | |||||
for and on behalf of | /s/ CAROLINE PANTALEAO | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Caroline Pantaleao | ||||
Authorised Signatory | |||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | |||||
for and on behalf of | /s/ GEORGES CUREY | ||||
BNP PARIBAS | Georges Curey | ||||
Head of Structured Export Finance | |||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
or and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
Dated March 12 2020 | ||
HOUATORRIS FINANCE LIMITED as Borrower CHANTIERS DE L’ATLANTIQUE (PREVIOUSLY KNOWN AS STX FRANCE S.A.) as Seller ROYAL CARIBBEAN CRUISES LTD. as Buyer CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Lenders and CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers | ||
FIRST SUPPLEMENTAL AGREEMENT relating to Hull No. M34 at Chantiers de l’Atlantique (previously known as STX France S.A.) |
Clause | Page | |||||||
1 | Definitions | 2 | ||||||
2 | Agreement of the Parties | 3 | ||||||
3 | Amendments to Relevant Documents | 3 | ||||||
4 | Representations and warranties | 4 | ||||||
5 | Conditions | 4 | ||||||
6 | Confirmation of continued effect | 5 | ||||||
7 | Costs and expenses | 5 | ||||||
8 | Miscellaneous and notices | 6 | ||||||
9 | Governing law | 6 | ||||||
Schedule 1 The Lenders | 8 | |||||||
Schedule 2 Documents and evidence required as conditions precedent (referred to in clause 5.1) | 13 | |||||||
Schedule 3 Form of Amended and Restated Facility Agreement | 16 | |||||||
Schedule 4 Form of Amended and Restated Receivable Purchase Agreement | 17 | |||||||
Schedule 5 Form of Amended and Restated Novation Agreement | 18 | |||||||
Schedule 6 Form of Amended and Restated Agency and Trust Deed | 19 | |||||||
Schedule 7 Form of Effective Date certificate | 20 |
Name | Facility Office and contact details | ||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | ||||
Banco Santander, S.A, Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: |
Name | Facility Office and contact details | ||||
elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | |||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA | ||||
37 RUE DU MARCHE SAINT HONORE | |||||
75001 PARIS | |||||
ACI : CHC03B1 | |||||
Alexandre de VATHAIRE / Mauricio GONZALEZ | |||||
alexandre.devathaire@bnpparibas.com | |||||
mauricio.gonzalez@us.bnpparibas.com | |||||
Tel : 00 331 42 98 00 29/00 1212 841 38 88 | |||||
Middle Office: For Operational / Servicing matters | |||||
KHALID BOUITIDA / THIERRY ANEZO | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA05A1 | |||||
khalid.k.bouitida@bnpparibas.com | |||||
thierry.anezo@bnpparibas.com | |||||
Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 | |||||
Back Office : For Standard Settlement Instruction | |||||
authentication/call-back | |||||
STEVE LOUISOR / VALERIE DUMOULIN | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA03A1 | |||||
paris.cib.boci.ca.3@bnpparibas.com | |||||
valerie.dumoulin@bnpparibas.com | |||||
steve.louisor@bnpparibas.com | |||||
Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 |
Name | Facility Office and contact details | ||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr |
Name | Facility Office and contact details | ||||
Société Générale | Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-dmt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com | ||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne 75008 Paris France Attention: Cedric le Duigou Guillaume Branco Herve Billi Claire Lucien Fax No: +33 1 44 90 48 01 Tel No: Cedric le Duigou: + 33 1 44 90 48 83 Guillaume Branco: + 33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: + 33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | ||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 |
Name | Facility Office and contact details | ||||
92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: + 33 1 73 28 85 04 |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a first supplemental agreement dated March 2020) | ||
HOUATORRIS FINANCE LIMITED as Existing Borrower ROYAL CARIBBEAN CRUISES LTD. as New Borrower CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers AND THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Original Lenders | ||
NOVATION AGREEMENT relating to a secured credit facility agreement for Hull No. M34 at Chantiers de l’Atlantique |
Clause | Page | |||||||
1 | Definitions | 2 | ||||||
2 | Consent and agreement of the Finance Parties | 4 | ||||||
3 | Assumption of liability and obligations | 4 | ||||||
4 | Amendment and restatement of Principal Agreement | 6 | ||||||
5 | Loan currency, Additional Advances and undrawn Commitments under the Principal Agreement | 6 | ||||||
6 | Conditions | 9 | ||||||
7 | Fixed rate | 10 | ||||||
8 | Representations and warranties | 10 | ||||||
9 | Covenants | 11 | ||||||
10 | Commitment and cancellation by the New Borrower | 12 | ||||||
11 | Satisfaction of Receivable, releases and BpiFAE Insurance Policy | 14 | ||||||
12 | Assignment and transfers | 14 | ||||||
13 | Miscellaneous and notices | 15 | ||||||
14 | Governing law and jurisdiction | 15 | ||||||
Schedule 1 The Original Lenders | 17 | |||||||
Schedule 2 Conditions precedent | 20 | |||||||
Schedule 3 Form of Novated Credit Agreement | 22 |
Existing Borrower | Walkers London office at present of 6 Gracechurch Street, London EC3V 0AT | ||||
New Borrower | RCL Cruises Ltd., Building 3, The Heights – Brooklands, Weybridge, Surrey, KT13 ONY, Attention: General Counsel |
Original Lender | Facility Office and contact details | Commitment % | ||||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 / +44 20 7986 4824 / +44 20 7500 0907 E-mail: weifong.chan@citi.com; antoine.paycha@citi.com; kara.catt@citi.com; romina.coates@citi.com | 24.1% | ||||||
Banco Santander, S.A. , Paris Branch | 374 rue Saint Honoré 75001 Paris Operational Address: Ciudad Grupo Santander, Avda De Cantabria, 28660 Boadilla del Monte, Madrid, Spain For Credit Matters: Elise Regnault / Ecaterina Mucuta / Andrea Ortiz / Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 Tel No: +34 912893722 / +33 1 53 53 70 46 / +1 6172170157 / +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail: elise.regnault@gruposantander.com ecaterina.mucuta@gruposantander.com andrea.ortiz@santander.us anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com For Operational Matters: Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 / Tel No: +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail:anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com corporativaeuropa@gruposantander.com | 8.6% |
Original Lender | Facility Office and contact details | Commitment % | ||||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées | 15.7% | ||||||
HSBC France | 15.8% |
Original Lender | Facility Office and contact details | Commitment % | ||||||
75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr | ||||||||
Société Générale | 29 Boulevard Haussmann, 75009 Paris, France For Credit Matters: Francois Rolland and Mathieu Chevallier 189, rue d’Aubervilliers, 75886 Paris, CEDEX 18, OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 78 98 francois.rolland@sgcib.com / mathieu.chevallier@sgcib.com For Operational Matters: Isabelle Guner and Laetitia Perrot Francois Rolland and Mathieu Chevallier 189, rue d’Aubervilliers, 75886 Paris, CEDEX 18, OPER/FIN/STR/DMT6 Phone: +33 1 57 29 20 76 / +33 1 58 98 26 20 par-oper-caf-dmt6@sgcib.com | 24.8% | ||||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | 10.9% | ||||||
100 |
SECTION 1.1. Defined Terms | 10 | |||||||
SECTION 1.2. Use of Defined Terms | 24 | |||||||
SECTION 1.3. Cross-References | 24 | |||||||
SECTION 1.4. Accounting and Financial Determinations | 24 | |||||||
ARTICLE II COMMITMENTS AND BORROWING PROCEDURES | ||||||||
SECTION 2.1. Commitment | 25 | |||||||
SECTION 2.2. Commitment of the Lenders; Termination and Reduction of Commitments | 25 | |||||||
SECTION 2.3. Borrowing Procedure | 25 | |||||||
SECTION 2.4. Funding | 28 | |||||||
ARTICLE III REPAYMENTS, PREPAYMENTS, INTEREST AND FEES | ||||||||
SECTION 3.1. Repayments | 28 | |||||||
SECTION 3.2. Prepayment | 28 | |||||||
SECTION 3.3. Interest Provisions | 29 | |||||||
SECTION 3.3.1. Rates | 29 | |||||||
SECTION 3.3.2. [Intentionally omitted] | 30 | |||||||
SECTION 3.3.3. Interest stabilisation. | 30 | |||||||
SECTION 3.3.4. Post-Maturity Rates | 30 | |||||||
SECTION 3.3.5. Payment Dates | 30 | |||||||
SECTION 3.3.6. Interest Rate Determination; Replacement Reference Banks | 30 | |||||||
SECTION 3.4. Commitment Fees | 32 | |||||||
SECTION 3.4.1. Payment | 32 | |||||||
SECTION 3.5. Other Fees | 33 | |||||||
ARTICLE IV CERTAIN LIBO RATE AND OTHER PROVISIONS | ||||||||
SECTION 4.1. LIBO Rate Lending Unlawful | 33 | |||||||
SECTION 4.2. Deposits Unavailable | 33 | |||||||
SECTION 4.3. Increased LIBO Rate Loan Costs, etc. | 34 | |||||||
SECTION 4.4. Funding Losses | 36 | |||||||
SECTION 4.4.1. Indemnity | 36 | |||||||
SECTION 4.4.2. Exclusion | 37 | |||||||
SECTION 4.5. Increased Capital Costs | 37 | |||||||
SECTION 4.6. Taxes | 38 | |||||||
SECTION 4.7. Reserve Costs | 40 | |||||||
SECTION 4.8. Payments, Computations, etc | 41 | |||||||
SECTION 4.9. Replacement Lenders, etc. | 41 | |||||||
SECTION 4.10. Sharing of Payments | 42 | |||||||
SECTION 4.10.1. Payments to Lenders | 42 | |||||||
SECTION 4.10.2. Redistribution of payments | 42 | |||||||
SECTION 4.10.3. Recovering Lender's rights | 43 | |||||||
SECTION 4.10.4. Reversal of redistribution | 43 | |||||||
SECTION 4.10.5. Exceptions | 43 | |||||||
SECTION 4.11. Set-off | 43 | |||||||
SECTION 4.12. Use of Proceeds | 44 | |||||||
SECTION 4.13. FATCA Information. | 44 | |||||||
SECTION 4.14. Resignation of the Facility Agent | 45 | |||||||
ARTICLE V CONDITIONS TO BORROWING | 45 | |||||||
SECTION 5.1. Advance of the Loan | 45 | |||||||
SECTION 5.1.1. Resolutions, etc | 46 | |||||||
SECTION 5.1.2. Opinions of Counsel | 46 | |||||||
SECTION 5.1.3. BpiFAE Insurance Policy | 46 | |||||||
SECTION 5.1.4. Closing Fees, Expenses, etc. | 46 | |||||||
SECTION 5.1.5. Compliance with Warranties, No Default, etc | 47 | |||||||
SECTION 5.1.6. Loan Request | 47 | |||||||
SECTION 5.1.7. Foreign Exchange Counterparty Confirmations | 47 | |||||||
SECTION 5.1.8. Protocol of delivery | 47 | |||||||
SECTION 5.1.9. Title to Purchased Vessel | 47 | |||||||
SECTION 5.1.10. Interest Stabilisation. | 48 | |||||||
SECTION 5.1.11. Escrow Account Security | 49 | |||||||
ARTICLE VI REPRESENTATIONS AND WARRANTIES | ||||||||
SECTION 6.1. Organization, etc | 49 | |||||||
SECTION 6.2. Due Authorization, Non-Contravention, etc | 49 | |||||||
SECTION 6.3. Government Approval, Regulation, etc | 50 | |||||||
SECTION 6.4. Compliance with Environmental Laws | 50 | |||||||
SECTION 6.5. Validity, etc | 50 | |||||||
SECTION 6.6. No Default, Event of Default or Prepayment Event | 50 | |||||||
SECTION 6.7. Litigation | 50 | |||||||
SECTION 6.8. The Purchased Vessel | 50 | |||||||
SECTION 6.9. Obligations rank pari passu; Liens | 51 | |||||||
SECTION 6.10. Withholding, etc | 51 | |||||||
SECTION 6.11. No Filing, etc. Required | 51 | |||||||
SECTION 6.12. No Immunity | 51 | |||||||
SECTION 6.13. Investment Company Act | 51 | |||||||
SECTION 6.14. Regulation U | 51 | |||||||
SECTION 6.15. Accuracy of Information | 51 | |||||||
SECTION 6.16. Compliance with Laws | 52 | |||||||
ARTICLE VII COVENANTS | ||||||||
SECTION 7.1. Affirmative Covenants | 52 | |||||||
SECTION 7.1.1. Financial Information, Reports, Notices, etc | 52 | |||||||
SECTION 7.1.2. Approvals and Other Consents | 54 | |||||||
SECTION 7.1.3. Compliance with Laws, etc | 54 | |||||||
SECTION 7.1.4. The Purchased Vessel | 54 | |||||||
SECTION 7.1.5. Insurance | 55 | |||||||
SECTION 7.1.6. Books and Records | 55 | |||||||
SECTION 7.1.7. BpiFAE Insurance Policy/French Authority Requirements | 55 | |||||||
SECTION 7.2. Negative Covenants | 55 | |||||||
SECTION 7.2.1. Business Activities | 56 | |||||||
SECTION 7.2.2. Indebtedness | 56 | |||||||
SECTION 7.2.3. Liens | 56 | |||||||
SECTION 7.2.4. Financial Condition | 58 | |||||||
SECTION 7.2.5. [Intentionally Omitted] | ||||||||
SECTION 7.2.6. Consolidation, Merger, etc | 59 | |||||||
SECTION 7.2.7. Asset Dispositions, etc | 60 | |||||||
SECTION 7.3. Lender incorporated in the Federal Republic of Germany | 60 | |||||||
ARTICLE VIII EVENTS OF DEFAULT | ||||||||
SECTION 8.1. Listing of Events of Default | 60 | |||||||
SECTION 8.1.1. Non-Payment of Obligations | 60 | |||||||
SECTION 8.1.2. Breach of Warranty | 60 | |||||||
SECTION 8.1.3. Non-Performance of Certain Covenants and Obligations | 60 | |||||||
SECTION 8.1.4. Default on Other Indebtedness | 60 | |||||||
SECTION 8.1.5. Bankruptcy, Insolvency, etc | 61 | |||||||
SECTION 8.2. Action if Bankruptcy | 62 | |||||||
SECTION 8.3. Action if Other Event of Default | 62 | |||||||
ARTICLE IX PREPAYMENT EVENTS | ||||||||
SECTION 9.1. Listing of Prepayment Events | 62 | |||||||
SECTION 9.1.1. Change of Control | 62 | |||||||
SECTION 9.1.2. Unenforceability | 62 | |||||||
SECTION 9.1.3. Approvals | 63 | |||||||
SECTION 9.1.4. Non-Performance of Certain Covenants and Obligations | 63 | |||||||
SECTION 9.1.5. Judgments | 63 | |||||||
SECTION 9.1.6. Condemnation, etc | 63 | |||||||
SECTION 9.1.7. Arrest | 63 | |||||||
SECTION 9.1.8. Sale/Disposal of the Purchased Vessel | 63 | |||||||
SECTION 9.1.9. BpiFAE Insurance Policy | 63 | |||||||
SECTION 9.1.10. Illegality | 63 | |||||||
SECTION 9.2. Mandatory Prepayment | 64 | |||||||
SECTION 9.3. Mitigation | 64 |
ARTICLE X THE FACILITY AGENT AND THE ECA AGENT | ||||||||
SECTION 10.1. Actions | 64 | |||||||
SECTION 10.2. Indemnity | 64 | |||||||
SECTION 10.3. Funding Reliance, etc | 65 | |||||||
SECTION 10.4. Exculpation | 65 | |||||||
SECTION 10.5. Successor | 66 | |||||||
SECTION 10.6. Loans by the Facility Agent | 67 | |||||||
SECTION 10.7. Credit Decisions | 67 | |||||||
SECTION 10.8. Copies, etc | 67 | |||||||
SECTION 10.9. The Agents’ Rights | 67 | |||||||
SECTION 10.10. The Facility Agent’s Duties | 68 |
SECTION 10.11. Employment of Agents | 68 | |||||||
SECTION 10.12. Distribution of Payments | 68 | |||||||
SECTION 10.13. Reimbursement | 68 | |||||||
SECTION 10.14. Instructions | 69 | |||||||
SECTION 10.15. Payments | 69 | |||||||
SECTION 10.16. “Know your customer” Checks | 69 | |||||||
SECTION 10.17. No Fiduciary Relationship | 69 | |||||||
SECTION 10.18. Illegality | 69 | |||||||
ARTICLE XI MISCELLANEOUS PROVISIONS | ||||||||
SECTION 11.1. Waivers, Amendments, etc | 70 | |||||||
SECTION 11.2. Notices | 71 | |||||||
SECTION 11.3. Payment of Costs and Expenses | 72 | |||||||
SECTION 11.4. Indemnification | 72 | |||||||
SECTION 11.5. Survival | 74 | |||||||
SECTION 11.6. Severability | 74 | |||||||
SECTION 11.7. Headings | 74 | |||||||
SECTION 11.8. Execution in Counterparts, Effectiveness, etc | 74 | |||||||
SECTION 11.9. Third Party Rights | 74 | |||||||
SECTION 11.10. Successors and Assigns | 75 | |||||||
SECTION 11.11. Sale and Transfer of the Loan; Participations in the Loan | 75 | |||||||
SECTION 11.11.1. Assignments | 75 | |||||||
SECTION 11.11.2. Participations | 77 | |||||||
SECTION 11.11.3. Register | 78 | |||||||
SECTION 11.11.4. Rights of BpiFAE to payments | 78 | |||||||
SECTION 11.12. Other Transactions | 79 | |||||||
SECTION 11.13. BpiFAE Insurance Policy | 79 |
SECTION 11.13.1. Terms of BpiFAE Insurance Policy | 79 | |||||||
SECTION 11.13.2. Obligations of the Borrower | 79 | |||||||
SECTION 11.13.3. Obligations of the ECA Agent and the Lenders | 79 | |||||||
SECTION 11.14. Law and Jurisdiction | 80 | |||||||
SECTION 11.14.1. Governing Law | 80 | |||||||
SECTION 11.14.2. Jurisdiction | 80 | |||||||
SECTION 11.14.3. Alternative Jurisdiction | 81 | |||||||
SECTION 11.14.4. Service of Process | 81 | |||||||
SECTION 11.15. Confidentiality | 81 | |||||||
SECTION 11.16. French Authority Requirements | 82 | |||||||
SECTION 11.17. Waiver of immunity | 82 | |||||||
SECTION 11.18. Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 82 |
Commitment | |||||
6.0250000507% of the Maximum Loan Amount | By Name: Title:: | ||||
Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com |
Commitment | |||||
4.3005743278% of the Maximum Loan Amount | By Name: Title: | ||||
Lending Office: 374 rue Saint Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Ana Sanz Gómez Fax No: +34 91 257 1682 Tel No: +34 912893722 / +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us |
Name | Facility Office and contact details | ||||
elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantand | |||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA | ||||
37 RUE DU MARCHE SAINT HONORE | |||||
75001 PARI | |||||
ACI : CHC03B1 | |||||
Alexandre de VATHAIRE / Mauricio GONZALEZ | |||||
alexandre.devathaire@bnpparibas.com | |||||
mauricio.gonzalez@us.bnpparibas.com | |||||
Tel : 00 331 42 98 00 29/00 1212 841 38 88 | |||||
Middle Office: For Operational / Servicing matters | |||||
KHALID BOUITIDA / THIERRY ANEZO | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA05A1 | |||||
khalid.k.bouitida@bnpparibas.com | |||||
thierry.anezo@bnpparibas.com | |||||
Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 | |||||
Back Office : For Standard Settlement Instruction | |||||
authentication/call-back | |||||
STEVE LOUISOR / VALERIE DUMOULIN | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA03A1 | |||||
paris.cib.boci.ca.3@bnpparibas.com | |||||
valerie.dumoulin@bnpparibas.com | |||||
steve.louisor@bnpparibas.com | |||||
Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 |
Commitment | |||||
3.9500000254% of the Maximum Loan Amount | By Name: Title: | ||||
HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Julie Bellais Celine Karsenty Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / + 33 1 40 70 22 97 Email: julie.bellais@hsbc.fr celine.karesenty@hsbc.fr |
Commitment | |||||
9.9328352107% of the Maximum Loan Amount | By Name: Title: | ||||
Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-dmt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com |
Commitment | |||||
2.7360454039% of the Maximum Loan Amount | By Name: Title: | ||||
1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com helene_ly@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com |
Commitment | ||||||||
69.1248996040% the Maximum Amount | of Loan | By Name: Title: | ||||||
1-3, rue de Passeur de Boulogne – CS | ||||||||
80054 | ||||||||
92861 Issy-les-Moulineaux Cedex 9 | ||||||||
France | ||||||||
Contact Person | ||||||||
Loan Administration Department: | ||||||||
Direction du Crédit Export: | ||||||||
Pierre-Marie Debreuille / Anne Crépin | ||||||||
Direction des Opérations: | ||||||||
Dominique Brossard / Patrick Sick | ||||||||
Telephone: | ||||||||
Pierre-Marie Debreuille | ||||||||
+33 1 73 28 87 64 | ||||||||
Anne Crépin +33 1 73 28 88 59 | ||||||||
Dominique Brossard +33 1 73 28 91 93 | ||||||||
Patrick Sick +33 1 73 28 87 66 | ||||||||
Email: | ||||||||
pierre-marie.debreuille@sfil.fr | ||||||||
anne.crepin@sfil.fr | ||||||||
dominique.brossard@sfil.fr | ||||||||
patrick.sick@sfil.fr | ||||||||
refinancements-export@sfil.fr | ||||||||
creditexport_ops@sfil.fr | ||||||||
Fax: + 33 1 73 28 85 04 |
By Name: Title: | ||
5th Floor Citigroup Centre Mail drop CGC2 05-65 25 Canada Square Canary Wharf London E14 5LB U.K. Fax no.: +44 20 7492 3980 Attention: EMEA Loans Agency |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a First Supplemental Agreement dated March 2020) | ||
CITIBANK EUROPE PLC, UK BRANCH (1) as Facility Agent CITICORP TRUSTEE COMPANY LIMITED (2) as Security Trustee CITIBANK N.A., LONDON BRANCH (3) as Global Coordinator SUMITOMO MITSUI BANKING CORPORATION (4) EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers (5) THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 (6) as Lenders and ROYAL CARIBBEAN CRUISES LTD. (7) as Borrower | ||
AGENCY AND TRUST DEED Hull M34 |
Introduction, definitions and interpretation 1 | |||||
Security Trustee 4 | |||||
Declaration of trust: supplementary provisions 12 | |||||
Application of proceeds 14 | |||||
Agents’ and Finance Parties' indemnities 16 | |||||
Custody of deeds; illegality 16 | |||||
Assignments by the Lenders 17 | |||||
Effect of Agreement 17 | |||||
Miscellaneous 17 | |||||
Agreement to provide power of attorney 17 | |||||
Notices and other matters 18 | |||||
Contracts (Rights of Third Parties) Act 1999 18 | |||||
Governing law and jurisdiction 18 | |||||
Schedule 1 The Lenders 19 |
Lender | Facility Office and contact details | Commitment % | ||||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | 6.0250000507 | ||||||
Banco Santander, S.A. Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: | 4.3005743278 |
Lender | Facility Office and contact details | Commitment % | ||||||
elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | ||||||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 | 3.9306453776 | ||||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr | 3.9500000254 |
Lender | Facility Office and contact details | Commitment % | ||||||
alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr | ||||||||
Société Générale | Société Générale Facility Office | 9.9328352107 | ||||||
29 Boulevard Haussmann | ||||||||
75009 Paris | ||||||||
France | ||||||||
For operational/servicing matters: | ||||||||
Bouchra BOUMEZOUED / Tatiana | ||||||||
BYCHKOVA | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/CAF/DMT6 | ||||||||
Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 | ||||||||
Email: bouchra.boumezoued@sgcib.com | ||||||||
tatiana.bychkova@sgcib.com | ||||||||
par-oper-caf-dmt6@sgcib.com | ||||||||
For credit matters: | ||||||||
Francois Rolland / Tingting Yu / Muriel | ||||||||
Baumann | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/SMO/EXT | ||||||||
Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 | ||||||||
/ +33 1 58 98 22 76 | ||||||||
Email: francois.rolland@sgcib.com | ||||||||
tingting.yu@sgcib.com | ||||||||
muriel.baumann@sgcib.com | ||||||||
Sumitomo Mitsui Banking Corporation | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou | 2.7360454039 |
Lender | Facility Office and contact details | Commitment % | ||||||
Europe Limited, Paris Branch | Guillaume Branco Herve Billi Claire Lucien Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 49 E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | |||||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: + 33 1 73 28 85 04 | 69.1248996040 | ||||||
100 |
Borrower | |||||
SIGNED by Colin Girgenti | |||||
for and on behalf of | /s/ COLIN GIRGENTI | ||||
HOEDISCUS FINANCE LIMITED | Attorney in-fact | ||||
Seller | |||||
SIGNED by Gilles Pinot de Villechenon | |||||
for and on behalf of | /s/ GILLES PINOT DE VILLECHENON | ||||
CHANTIERS DE L’ATLANTIQUE | Attorney in-fact | ||||
Buyer | |||||
SIGNED by Antje M. Gibson | |||||
for and on behalf of | /s/ ANTJE M. GIBSON | ||||
ROYAL CARIBBEAN CRUISES LTD. | Attorney in-fact | ||||
Facility Agent | |||||
SIGNED by Robert Brodie | |||||
for and on behalf of | /s/ ROBERT BRODIE | ||||
Citibank Europe plc, UK Branch | Delegated Signatory | ||||
Security Trustee | |||||
SIGNED by Viola Japaul | |||||
for and on behalf of | /s/ VIOLA JAPAUL | ||||
CITICORP TRUSTEE COMPANY LIMITED | Authorised Signatory | ||||
Global Coordinator | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
French Coordinating Bank | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Authorised Signatory | ||||
HSBC FRANCE | /s/ GUY WOELFEL | ||||
Authorised Signatory | |||||
ECA Agent | |||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
The Lenders | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
CITIBANK N.A., LONDON BRANCH | Managing Director | ||||
SIGNED by | /s/ CAROLINE PANTALEAO | ||||
for and on behalf of | Caroline Pantaleao | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Authorised Signatory | ||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | /s/ GEORGES CUREY | ||||
for and on behalf of | Georges Curey | ||||
BNP PARIBAS | Head of Structured Export Finance | ||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
SIGNED by | /s/ BENJAMIN PHILIPPAERTS | ||||
for and on behalf of | Benjamin Philippaerts | ||||
SFIL | Direction Credit Export | ||||
/s/ EMILIE BOISSIER | |||||
Emilie Boissier | |||||
Direction Credit Export | |||||
The Mandated Lead Arrangers | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
SIGNED by | |||||
for and on behalf of | /s/ CAROLINE PANTALEAO | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Caroline Pantaleao | ||||
Authorised Signatory | |||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | |||||
for and on behalf of | /s/ GEORGES CUREY | ||||
BNP PARIBAS | Georges Curey | ||||
Head of Structured Export Finance | |||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
or and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
Dated 12 March 2020 | ||
HIBISYEU FINANCE LIMITED as Borrower CHANTIERS DE L’ATLANTIQUE (PREVIOUSLY KNOWN AS STX FRANCE S.A.) as Seller ROYAL CARIBBEAN CRUISES LTD. as Buyer CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Lenders and CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers | ||
FIRST SUPPLEMENTAL AGREEMENT relating to Hull No. C34 at Chantiers de l’Atlantique (previously known as STX France S.A.) |
Clause | Page | |||||||
1 | Definitions | 2 | ||||||
2 | Agreement of the Parties | 3 | ||||||
3 | Amendments to Relevant Documents | 3 | ||||||
4 | Representations and warranties | 4 | ||||||
5 | Conditions | 4 | ||||||
6 | Confirmation of continued effect | 5 | ||||||
7 | Costs and expenses | 5 | ||||||
8 | Miscellaneous and notices | 6 | ||||||
9 | Governing law | 6 | ||||||
Schedule 1 The Lenders | 8 | |||||||
Schedule 2 Documents and evidence required as conditions precedent (referred to in clause 5.1) | 13 | |||||||
Schedule 3 Form of Amended and Restated Facility Agreement | 17 | |||||||
Schedule 4 Form of Amended and Restated Receivable Purchase Agreement | 18 | |||||||
Schedule 5 Form of Amended and Restated Novation Agreement | 19 | |||||||
Schedule 6 Form of Amended and Restated Agency and Trust Deed | 20 | |||||||
Schedule 7 Form of Effective Date certificate | 21 |
Name | Facility Office and contact details | ||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | ||||
Banco Santander, S.A, Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 |
Name | Facility Office and contact details | ||||
E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | |||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA | ||||
37 RUE DU MARCHE SAINT HONORE | |||||
75001 PARIS | |||||
ACI : CHC03B1 | |||||
Alexandre de VATHAIRE / Mauricio GONZALEZ | |||||
alexandre.devathaire@bnpparibas.com | |||||
mauricio.gonzalez@us.bnpparibas.com | |||||
Tel : 00 331 42 98 00 29/00 1212 841 38 88 | |||||
Middle Office: For Operational / Servicing matters | |||||
KHALID BOUITIDA / THIERRY ANEZO | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA05A1 | |||||
khalid.k.bouitida@bnpparibas.com | |||||
thierry.anezo@bnpparibas.com | |||||
Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 | |||||
Back Office : For Standard Settlement Instruction | |||||
authentication/call-back | |||||
STEVE LOUISOR / VALERIE DUMOULIN | |||||
MILLENAIRE 4 | |||||
35, RUE DE LA GARE | |||||
75019 PARIS | |||||
ACI : CVA03A1 | |||||
paris.cib.boci.ca.3@bnpparibas.com | |||||
valerie.dumoulin@bnpparibas.com | |||||
steve.louisor@bnpparibas.com | |||||
Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 |
Name | Facility Office and contact details | ||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr |
Name | Facility Office and contact details | ||||
Société Générale | Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-dmt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com | ||||
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne 75008 Paris France Attention: Cedric le Duigou Guillaume Branco Herve Billi Claire Lucien Fax No: +33 1 44 90 48 01 Tel No: Cedric le Duigou: + 33 1 44 90 48 83 Guillaume Branco: + 33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: + 33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | ||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 |
Name | Facility Office and contact details | ||||
92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: + 33 1 73 28 85 04 |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a first supplemental agreement dated March 2020) | ||
HIBISYEU FINANCE LIMITED as Existing Borrower ROYAL CARIBBEAN CRUISES LTD. as New Borrower CITIBANK EUROPE PLC, UK BRANCH as Facility Agent CITICORP TRUSTEE COMPANY LIMITED as Security Trustee CITIBANK N.A., LONDON BRANCH as Global Coordinator HSBC FRANCE as French Coordinating Bank SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers AND THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 as Original Lenders | ||
NOVATION AGREEMENT relating to a secured credit facility agreement for Hull No. C34 at Chantiers de l’Atlantique |
Existing Borrower | Walkers London office at present of 6 Gracechurch Street, London EC3V 0AT | ||||
New Borrower | RCL Cruises Ltd., Building 3, The Heights – Brooklands, Weybridge, Surrey, KT13 ONY, Attention: General Counsel |
Original Lender | Facility Office and contact details | Commitment % | ||||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 / +44 20 7986 4824 / +44 20 7500 0907 E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | 21.4 % | ||||||
Banco Santander, S.A. , Paris Branch | 374 rue Saint Honoré 75001 Paris Operational Address: Ciudad Grupo Santander, Avda De Cantabria, 28660 Boadilla del Monte, Madrid, Spain For Credit Matters: Elise Regnault / Ecaterina Mucuta / Andrea Ortiz / Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 Tel No: +34 912893722 / +33 1 53 53 70 46 / +1 6172170157 / +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail: elise.regnault@gruposantander.com ecaterina.mucuta@gruposantander.com andrea.ortiz@santander.us anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com For Operational Matters: Ana Sanz Gomez / Vanessa Berrio / Caroline Pereira Pantaleao Fax No: +34 91 257 1682 / Tel No: +34 912891790 / +34 912891028 / +33 1 53 53 70 35 E-mail:anasanz@gruposantander.com vaberrio@gruposantander.com cpantaleao@gruposantander.com corporativaeuropa@gruposantander.com | 10.1% | ||||||
BNP Paribas | Front Office to keep copied to all matters. | 15.7% |
Original Lender | Facility Office and contact details | Commitment % | ||||||
France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr | ||||||||
Société Générale | 29 Boulevard Haussmann, 75009 Paris, France For Credit Matters: Francois Rolland and Mathieu Chevallier 189, rue d’Aubervilliers, 75886 Paris, CEDEX 18, OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 78 98 francois.rolland@sgcib.com / mathieu.chevallier@sgcib.com For Operational Matters: Isabelle Guner and Laetitia Perrot Francois Rolland and Mathieu Chevallier 189, rue d’Aubervilliers, 75886 Paris, CEDEX 18, OPER/FIN/STR/DMT6 Phone: +33 1 57 29 20 76 / +33 1 58 98 26 20 par-oper-caf-dmt6@sgcib.com | 24.8% |
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | 10.9% | ||||||
100 |
Commitment | |||||
5.3479946973% of the Maximum Loan Amount | By Name: Title: | ||||
Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com |
Commitment | |||||
5.0254557412% of the Maximum Loan Amount | By Name: Title: | ||||
Lending Office: 374 rue Saint Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Ana Sanz Gómez Fax No: +34 91 257 1682 Tel No: +34 912893722 / +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us |
Commitment | |||||
3.9306454510% of the Maximum Loan Amount | By Name: Title: | ||||
Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 |
Commitment | |||||
4.2645646367% of the Maximum Loan Amount | By Name: Title: | ||||
HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Julie Bellais Celine Karsenty Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / + 33 1 40 70 22 97 Email: julie.bellais@hsbc.fr celine.karesenty@hsbc.fr |
Commitment | |||||
9.9328353079% of the Maximum Loan Amount | By Name: Title: | ||||
Société Générale Facility Office 29 Boulevard Haussmann 75009 Paris France For operational/servicing matters: Bouchra BOUMEZOUED / Tatiana BYCHKOVA Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/CAF/DMT6 Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 Email: bouchra.boumezoued@sgcib.com tatiana.bychkova@sgcib.com par-oper-caf-mt6@sgcib.com For credit matters: Francois Rolland / Tingting Yu / Muriel Baumann Société Générale 189, rue d’Aubervilliers 75886 PARIS CEDEX 18 OPER/FIN/SMO/EXT Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 / +33 1 58 98 22 76 Email: francois.rolland@sgcib.com tingting.yu@sgcib.com muriel.baumann@sgcib.com |
Commitment | |||||
2.7360453298% of the Maximum Loan Amount | By Name: Title: | ||||
1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou Guillaume Branco Herve Billi Claire Lucien Helene Ly Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 76 E-mail : cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com helene_ly@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com |
Commitment | ||||||||
68.7624588361% the Maximum Amount | of Loan | By Name: Title: | ||||||
1-3, rue de Passeur de Boulogne – CS | ||||||||
80054 | ||||||||
92861 Issy-les-Moulineaux Cedex 9 | ||||||||
France | ||||||||
Contact Person | ||||||||
Loan Administration Department: | ||||||||
Direction du Crédit Export: | ||||||||
Pierre-Marie Debreuille / Anne Crépin | ||||||||
Direction des Opérations: | ||||||||
Dominique Brossard / Patrick Sick | ||||||||
Telephone: | ||||||||
Pierre-Marie Debreuille | ||||||||
+33 1 73 28 87 64 | ||||||||
Anne Crépin +33 1 73 28 88 59 | ||||||||
Dominique Brossard +33 1 73 28 91 93 | ||||||||
Patrick Sick +33 1 73 28 87 66 | ||||||||
Email: | ||||||||
pierre-marie.debreuille@sfil.fr | ||||||||
anne.crepin@sfil.fr | ||||||||
dominique.brossard@sfil.fr | ||||||||
patrick.sick@sfil.fr | ||||||||
refinancements-export@sfil.fr | ||||||||
creditexport_ops@sfil.fr | ||||||||
Fax: + 33 1 73 28 85 04 |
By Name: Title: | |||||
5th Floor Citigroup Centre Mail drop CGC2 05-65 25 Canada Square Canary Wharf London E14 5LB U.K. Fax no.: +44 20 7492 3980 Attention: EMEA Loans Agency |
Private & Confidential | ||
Dated 24 July 2017 | ||
(as amended and restated by a First Supplemental Agreement dated March 2020) | ||
CITIBANK EUROPE PLC, UK BRANCH (1) as Facility Agent CITICORP TRUSTEE COMPANY LIMITED (2) as Security Trustee CITIBANK N.A., LONDON BRANCH (3) as Global Coordinator SUMITOMO MITSUI BANKING CORPORATION (4) EUROPE LIMITED, PARIS BRANCH as ECA Agent CITIBANK N.A., LONDON BRANCH, BANCO SANTANDER, S.A., PARIS BRANCH, BNP PARIBAS, HSBC FRANCE, SOCIÉTÉ GÉNÉRALE and SUMITOMO MITSUI BANKING CORPORATION EUROPE LIMITED, PARIS BRANCH as Mandated Lead Arrangers (5) THE BANKS AND FINANCIAL INSTITUTIONS LISTED IN SCHEDULE 1 (6) as Lenders and ROYAL CARIBBEAN CRUISES LTD. (7) as Borrower | ||
AGENCY AND TRUST DEED Hull C34 |
Lender | Facility Office and contact details | Commitment % | ||||||
Citibank N.A., London Branch | Citigroup Centre Canada Square London E14 5LB United Kingdom Attention: Wei-Fong Chan Kara Catt Romina Coates Antoine Paycha Fax No: +44 20 7986 4881 Tel No: +44 20 7986 3036 / +44 20 7508 0344 +44 20 7986 4824 +44 20 7500 0907 / E-mail: weifong.chan@citi.com kara.catt@citi.com romina.coates@citi.com antoine.paycha@citi.com | 5.3479946973 | ||||||
Banco Santander, S.A. Paris Branch | Facility Office: 374, rue Saint-Honoré 75001 Paris France Operational address: Ciudad Financiera Avenida de Cantabria s/n Edificio Encinar 2a planta 28600 Boadilla del Monte Spain Fax No: +34 91 257 1682 Attention: Elise Regnault Julián Arroyo Angela Rabanal Ecaterina Mucuta Vanessa Berrio Vélez Ana Sanz Gómez Tel No: +34 912893722 +1 212-297-2919 +1 212-297-2942 +33 1 53 53 70 46 +34 91 289 10 28 +34 91 289 17 90 E-mail: | 5.0254557412 |
Lender | Facility Office and contact details | Commitment % | ||||||
elise.regnault@gruposantander.com Julian.Arroyo@santander.us arabanal@santander.us ecaterina.mucuta@gruposantander.com vaberrio@gruposantander.com anasanz@gruposantander.com MiddleOfficeParis@gruposantander.com | ||||||||
BNP Paribas | Front Office to keep copied to all matters. BNPP SA 37 RUE DU MARCHE SAINT HONORE 75001 PARIS ACI : CHC03B1 Alexandre de VATHAIRE / Mauricio GONZALEZ alexandre.devathaire@bnpparibas.com mauricio.gonzalez@us.bnpparibas.com Tel : 00 331 42 98 00 29/00 1212 841 38 88 Middle Office: For Operational / Servicing matters KHALID BOUITIDA / THIERRY ANEZO MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA05A1 khalid.k.bouitida@bnpparibas.com thierry.anezo@bnpparibas.com Tel : 00 331 42 98 58 69 / 00 331 43 16 81 57 Back Office : For Standard Settlement Instruction authentication/call-back STEVE LOUISOR / VALERIE DUMOULIN MILLENAIRE 4 35, RUE DE LA GARE 75019 PARIS ACI : CVA03A1 paris.cib.boci.ca.3@bnpparibas.com valerie.dumoulin@bnpparibas.com steve.louisor@bnpparibas.com Tel : 00 331 55 77 91 86 / 00 331 40 14 46 59 | 3.9306454510 | ||||||
HSBC France | HSBC France – Global Banking Agency Operations (GBAO) Transaction Manager Unit 103 avenue des Champs Elysées 75008 Paris France Attention: Florencia Thomas Alexandra Penda Fax No: +33 1 40 70 28 80 Tel No: +33 1 40 70 73 81 / +33 1 41 02 67 50 Email: florencia.thomas@hsbc.fr | 4.2645646367 |
Lender | Facility Office and contact details | Commitment % | ||||||
alexandra.penda@hsbc.fr Copy to: HSBC France 103 avenue des Champs Elysées 75008 Paris France Attention: Celine Karsenty / Julie Bellais Fax No: +33 1 40 70 78 93 Tel No: +33 1 40 70 28 59 / +33 1 40 70 22 97 Email: celine.karsenty@hsbc.fr julie.bellais@hsbc.fr | ||||||||
Société Générale | Société Générale Facility Office | 9.9328353079 | ||||||
29 Boulevard Haussmann | ||||||||
75009 Paris | ||||||||
France | ||||||||
For operational/servicing matters: | ||||||||
Bouchra BOUMEZOUED / Tatiana | ||||||||
BYCHKOVA | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/CAF/DMT6 | ||||||||
Phone: +33 1 57 29 13 12 / +33 1 58 98 43 05 | ||||||||
Email: bouchra.boumezoued@sgcib.com | ||||||||
tatiana.bychkova@sgcib.com | ||||||||
par-oper-caf-dmt6@sgcib.com | ||||||||
For credit matters: | ||||||||
Francois Rolland / Tingting Yu / Muriel | ||||||||
Baumann | ||||||||
Société Générale 189, rue d’Aubervilliers | ||||||||
75886 | ||||||||
PARIS CEDEX 18 | ||||||||
OPER/FIN/SMO/EXT | ||||||||
Phone: +33 1 58 98 17 78 / +33 1 58 98 49 18 | ||||||||
/ +33 1 58 98 22 76 | ||||||||
Email: francois.rolland@sgcib.com | ||||||||
tingting.yu@sgcib.com | ||||||||
muriel.baumann@sgcib.com | ||||||||
Sumitomo Mitsui Banking Corporation | 1/3/5 rue Paul Cézanne, 75008 Paris, France Attention: Cedric Le Duigou | 2.7360453298 |
Lender | Facility Office and contact details | Commitment % | ||||||
Europe Limited, Paris Branch | Guillaume Branco Herve Billi Claire Lucien Fax No: +33 1 44 90 48 01 Tel No: Cedric Le Duigou: +33 1 44 90 48 83 Guillaume Branco: +33 1 44 90 48 71 Herve Billi: +33 1 44 90 48 48 Claire Lucien: +33 1 44 90 48 49 Helene Ly: +33 1 44 90 48 49 E-mail: cedric_leduigou@fr.smbcgroup.com guillaume_branco@fr.smbcgroup.com herve_billi@fr.smbcgroup.com claire_lucien@fr.smbcgroup.com helene_ly@fr.smbcgroup.com | |||||||
SFIL | 1-3, rue de Passeur de Boulogne – CS 80054 92861 Issy-les-Moulineaux Cedex 9 France Contact Person Loan Administration Department: Direction du Crédit Export: Pierre-Marie Debreuille / Anne Crépin Direction des Opérations: Dominique Brossard / Patrick Sick Telephone: Pierre-Marie Debreuille +33 1 73 28 87 64 Anne Crépin +33 1 73 28 88 59 Dominique Brossard +33 1 73 28 91 93 Patrick Sick +33 1 73 28 87 66 Email: pierre-marie.debreuille@sfil.fr anne.crepin@sfil.fr dominique.brossard@sfil.fr patrick.sick@sfil.fr refinancements-export@sfil.fr creditexport_ops@sfil.fr Fax: + 33 1 73 28 85 04 | 68.7624588361 | ||||||
100 |
Borrower | |||||
SIGNED by Colin Girgenti | |||||
for and on behalf of | /s/ COLIN GIRGENTI | ||||
HOEDISCUS FINANCE LIMITED | Attorney in-fact | ||||
Seller | |||||
SIGNED by Gilles Pinot de Villechenon | |||||
for and on behalf of | /s/ GILLES PINOT DE VILLECHENON | ||||
CHANTIERS DE L’ATLANTIQUE | Attorney in-fact | ||||
Buyer | |||||
SIGNED by Antje M. Gibson | |||||
for and on behalf of | /s/ ANTJE M. GIBSON | ||||
ROYAL CARIBBEAN CRUISES LTD. | Attorney in-fact | ||||
Facility Agent | |||||
SIGNED by Robert Brodie | |||||
for and on behalf of | /s/ ROBERT BRODIE | ||||
Citibank Europe plc, UK Branch | Delegated Signatory | ||||
Security Trustee | |||||
SIGNED by Viola Japaul | |||||
for and on behalf of | /s/ VIOLA JAPAUL | ||||
CITICORP TRUSTEE COMPANY LIMITED | Authorised Signatory | ||||
Global Coordinator | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
French Coordinating Bank | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Authorised Signatory | ||||
HSBC FRANCE | /s/ GUY WOELFEL | ||||
Authorised Signatory | |||||
ECA Agent | |||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
The Lenders | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
CITIBANK N.A., LONDON BRANCH | Managing Director | ||||
SIGNED by | /s/ CAROLINE PANTALEAO | ||||
for and on behalf of | Caroline Pantaleao | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Authorised Signatory | ||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | /s/ GEORGES CUREY | ||||
for and on behalf of | Georges Curey | ||||
BNP PARIBAS | Head of Structured Export Finance | ||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
for and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
SIGNED by | /s/ BENJAMIN PHILIPPAERTS | ||||
for and on behalf of | Benjamin Philippaerts | ||||
SFIL | Direction Credit Export | ||||
/s/ EMILIE BOISSIER | |||||
Emilie Boissier | |||||
Direction Credit Export | |||||
The Mandated Lead Arrangers | |||||
SIGNED by Alex C. Taylor | |||||
for and on behalf of | /s/ ALEX C. TAYLOR | ||||
Citibank N.A., LOndon Branch | Managing Director | ||||
SIGNED by | |||||
for and on behalf of | /s/ CAROLINE PANTALEAO | ||||
BANCO SANTANDER, S.A., PARIS BRANCH | Caroline Pantaleao | ||||
Authorised Signatory | |||||
/s/ PIERRE ROSEROT | |||||
Pierre Roserot | |||||
Authorised Signatory | |||||
SIGNED by | |||||
for and on behalf of | /s/ GEORGES CUREY | ||||
BNP PARIBAS | Georges Curey | ||||
Head of Structured Export Finance | |||||
/s/ M. ALEXANDRE DE VATHAIRE | |||||
M. Alexandre de Vathaire | |||||
Head of France & UK Export Finance | |||||
SIGNED by | /s/JULIE BELLAIS | ||||
for and on behalf of | Julie Bellais | ||||
HSBC FRANCE | Authorised Signatory | ||||
/s/ GUY WOELFEL | |||||
Guy Woelfel | |||||
Authorised Signatory | |||||
SIGNED by Agnes Deschenes Voirin | |||||
for and on behalf of | /s/ AGNES DESCHENES VOIRIN | ||||
SOCIÉTÉ GÉNÉRALE | Authorised Signatory | ||||
SIGNED by Matthew Bambury | |||||
or and on behalf of | |||||
SUMITOMO MITSUI BANKING CORPORATION | /s/ MATTHEW BAMBURY | ||||
EUROPE LIMITED, PARIS BRANCH | Attorney in-fact | ||||
Date: | May 21, 2020 | |||||||
/s/ Richard D. Fain | ||||||||
Richard D. Fain | ||||||||
Chairman and | ||||||||
Chief Executive Officer | ||||||||
(Principal Executive Officer) |
Date: | May 21, 2020 | |||||||
/s/ Jason T. Liberty | ||||||||
Jason T. Liberty | ||||||||
Executive Vice President, Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Date: | May 21, 2020 | ||||||||||
By: | /s/ Richard D. Fain | ||||||||||
Richard D. Fain | |||||||||||
Chairman and | |||||||||||
Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
By: | /s/ Jason T. Liberty | ||||||||||
Jason T. Liberty | |||||||||||
Executive Vice President, Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
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Fair Value Measurements and Derivative Instruments - Derivatives Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ (119,882) | $ 4,780 |
Foreign currency forward contracts | Other income (expense) | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | (52,676) | 5,014 |
Fuel swaps | Other income (expense) | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | (67,206) | (98) |
Fuel swaps | Fuel | ||
Derivative Instruments | ||
Amount of Gain (Loss) Recognized in Income on Derivatives | $ 0 | $ (136) |
Leases - Supplemental Noncash Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 27,841 | $ 31,981 |
Operating cash flows from finance leases | 1,933 | 596 |
Financing cash flows from finance leases | $ 3,823 | $ 3,606 |
Revenues - Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 2,032,750 | $ 2,439,767 | |
Customer refunds | 847,200 | 32,900 | |
Contract liability | 470,200 | $ 1,700,000 | |
Contract asset | 54,900 | 55,500 | |
Commission, transportation and other | |||
Capitalized Contract Cost [Line Items] | |||
Prepaid travel agent commissions | $ 33,500 | $ 163,200 | |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 2 days | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Length of cruise | 25 days | ||
Port Costs | |||
Capitalized Contract Cost [Line Items] | |||
Passenger ticket revenues | $ 124,500 | $ 152,000 |
Commitment and Contingencies (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Capital Commitments | Our future capital commitments consist primarily of new ship orders. As of March 31, 2020, our Global Brands and Partner Brands have the following ships on order. COVID-19 has impacted shipyard operations and we expect that this will result in delivery delays of ships on order and will adjust the timing of our contractual ship deliveries:
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Other Assets |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets | Other Assets A Variable Interest Entity (“VIE”) is an entity in which the equity investors have not provided enough equity to finance the entity’s activities or the equity investors: (1) cannot directly or indirectly make decisions about the entity’s activities through their voting rights or similar rights; (2) do not have the obligation to absorb the expected losses of the entity; (3) do not have the right to receive the expected residual returns of the entity; or (4) have voting rights that are not proportionate to their economic interests and the entity’s activities involve or are conducted on behalf of an investor with a disproportionately small voting interest. We have determined that TUI Cruises GmbH, our 50%-owned joint venture, which operates the brand TUI Cruises, is a VIE. As of March 31, 2020, the net book value of our investment in TUI Cruises was $613.9 million, primarily consisting of $467.9 million in equity and a loan of €130.8 million, or approximately $143.5 million based on the exchange rate at March 31, 2020. As of December 31, 2019, the net book value of our investment in TUI Cruises was $598.1 million, primarily consisting of $443.1 million in equity and a loan of €133.2 million, or approximately $149.5 million based on the exchange rate at December 31, 2019. The loan, which was made in connection with the sale of Splendour of the Seas in April 2016, accrues interest at a rate of 6.25% per annum and is payable over 10 years. This loan is 50% guaranteed by TUI AG, our joint venture partner in TUI Cruises, and is secured by a first priority mortgage on the ship. The majority of these amounts were included within Other assets in our consolidated balance sheets. TUI Cruises has various ship construction and financing agreements which include certain restrictions on each of our and TUI AG’s ability to reduce our current ownership interest in TUI Cruises below 37.55% through May 2031. Our investment amount, outstanding term loan and the potential obligations under the bank loan guarantee are substantially our maximum exposure to loss in connection with our investment in TUI Cruises. We have determined that we are not the primary beneficiary of TUI Cruises. We believe that the power to direct the activities that most significantly impact TUI Cruises’ economic performance are shared between ourselves and TUI AG. All the significant operating and financial decisions of TUI Cruises require the consent of both parties, which we believe creates shared power over TUI Cruises. Accordingly, we do not consolidate this entity and account for this investment under the equity method of accounting. On February 7, 2020, TUI Cruises entered into an agreement to acquire Hapag-Lloyd Cruises, a luxury and expedition brand for German-speaking guests, from TUI AG. Hapag-Lloyd Cruises operates two luxury liners and three smaller expedition ships. The transaction is subject to regulatory approval and customary closing conditions. The majority of the purchase price for this acquisition is being financed by third-party financing, however, each shareholder is making a contribution of €75 million to fund a portion of the purchase price. We have determined that Pullmantur Holdings, in which we have a 49% noncontrolling interest and Springwater Capital LLC has a 51% interest, is a VIE for which we are not the primary beneficiary, as we do not have the power to direct the activities that most significantly impact the entity's economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. As of March 31, 2020, we did not have any exposure to loss in Pullmantur Holdings as a result of the loans and net receivables written-off as of March 31, 2020. Refer to Note 3. Impairment and Credit Losses for further information on our credit loss evaluation related to these receivables as of March 31, 2020. As of December 31, 2019, our maximum exposure to loss in Pullmantur Holdings was $49.7 million, consisting of loans and other receivables. These amounts were included within Trade and other receivables, net and Other assets in our consolidated balance sheets. We have provided a non-revolving working capital facility to a Pullmantur Holdings subsidiary in the amount of up to €15.0 million or approximately $16.5 million based on the exchange rate at March 31, 2020. Proceeds of the facility, which were available to be drawn through December 2018 accrued interest at an interest rate of 6.5% per annum and are payable through 2022. An affiliate of Springwater Capital LLC has guaranteed repayment of 51% of the outstanding amounts under the facility. As of March 31, 2020, €11.4 million, or approximately $12.5 million, based on the exchange rate at March 31, 2020, was outstanding under this facility and was fully written-off as of March 31, 2020. As of December 31, 2019, €11.0 million, or approximately $12.3 million, based on the exchange rate at December 31, 2019, was outstanding under this facility. We have determined that Grand Bahama, a ship repair and maintenance facility in which we have a 40% noncontrolling interest, is a VIE. This facility serves cruise and cargo ships, oil and gas tankers and offshore units. We utilize this facility, among other ship repair facilities, for our regularly scheduled drydocks and certain emergency repairs as may be required. During the quarters ended March 31, 2020 and 2019, we made payments of $0.2 million and $40.3 million, respectively, to Grand Bahama for ship repair and maintenance services. We have determined that we are not the primary beneficiary of this facility as we do not have the power to direct the activities that most significantly impact the facility’s economic performance. Accordingly, we do not consolidate this entity and we account for this investment under the equity method of accounting. During the quarter ended March 31, 2020, we performed an impairment evaluation on our investment in Grand Bahama. As a result of the evaluation, we did not deem our investment balance to be recoverable and recorded an impairment charge of $30.1 million. Refer to Note 3. Impairment and Credit Losses for further information regarding the impairment evaluation. As of March 31, 2020, the net book value of our investment in Grand Bahama was $24.0 million, consisting of loans. As of December 31, 2019, the net book value of our investment in Grand Bahama was $47.9 million, consisting of $27.0 million in equity and loans of $20.9 million. These amounts represent our maximum exposure to loss related to our investment in Grand Bahama. Our loans to Grand Bahama mature between December 2020 and March 2026 and bear interest at LIBOR plus 2.00% to 3.75%, capped at 5.75% for the majority of the outstanding loan balance. Interest payable on the loans is due on a semi-annual basis. We did not receive any principal and interest payments during the quarter ended March 31, 2020. During the quarter ended March 31, 2019, we received principal and interest payments of $6.6 million. The loan balances are included within Trade and other receivables, net and Other assets in our consolidated balance sheets. As of March 31, 2020, the loans were accruing interest under the effective yield method. Effective April 1, 2020, we determined the loans to be in non-accrual status. We monitor credit risk associated with the loans through our participation on Grand Bahama’s board of directors along with our review of Grand Bahama’s financial statements and projected cash flows. Based on this review, we do not expect to realize credit losses associated with the outstanding loans as of March 31, 2020. The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands):
(1)There were no dividends received from TUI Cruises for the quarter ended March 31, 2020. For the quarter ended March 31, 2019, amount includes dividends of €50.0 million from TUI Cruises, net of tax withholdings.
(1)Included within Trade and other receivables, net in our consolidated balance sheets. (2)Included within Other assets in our consolidated balance sheets. We also provide ship management services to TUI Cruises GmbH and Pullmantur Holdings. Additionally, we bareboat charter to Pullmantur Holdings the vessels currently operated by its brands, which were retained by us following the sale of our 51% interest in Pullmantur Holdings. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):
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Commitments and Contingencies |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies | Commitments and Contingencies Ship Purchase Obligations Our future capital commitments consist primarily of new ship orders. As of March 31, 2020, we had one Quantum-class ship, two Oasis-class ships and three ships of a new generation, known as our Icon-class, on order for our Royal Caribbean International brand with an aggregate capacity of approximately 32,400 berths. As of March 31, 2020, we had two Edge-class ships on order for our Celebrity Cruises brand with an aggregate capacity of approximately 6,500 berths. Additionally, as of March 31, 2020, we have five ships on order for our Silversea Cruises brand with an aggregate capacity of approximately 2,400 berths. In June 2019, Silversea Cruises entered into a $300 million unsecured term loan facility for the financing of Silver Moon to pay a portion of the ship's contract price through a facility guaranteed by us. We expect to draw upon this loan when we take delivery of the ship. The loan will be due and payable at maturity in June 2028. Interest on the loan will accrue at LIBOR plus 1.50%. In September 2019, Silversea Cruises entered into two credit agreements, guaranteed by us, for the unsecured financing of the first and second Evolution-class ships for an amount of up to 80% of each ship's contract price through facilities to be guaranteed 95% by Euler Hermes, the official export credit agency of Germany. The maximum loan amount under each facility is not to exceed the United States dollar equivalent of €351.6 million in the case of the first Evolution-class ship and €359.0 million in the case of the second Evolution-class ship, or approximately $385.8 million and $393.9 million, respectively, based on the exchange rate at March 31, 2020. Each loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of each ship. At our election, interest on each loan will accrue either (1) at a fixed rate of 4.14% and 4.18%, respectively (inclusive of the applicable margin) or (2) at a floating rate equal to LIBOR plus 0.79% and 0.83%, respectively. The first and second Evolution-class ships will each have a capacity of approximately 600 berths and are currently scheduled for delivery in the first quarters of 2022 and 2023, respectively. In December 2019, we entered into a credit agreement for the unsecured financing of the sixth Oasis-class ship for up to 80% of the ship’s contract price through a facility to be guaranteed 100% by Bpifrance Assurance Export, the official export credit agency of France. Under the financing arrangement, we have the right, but not the obligation, to satisfy the obligations to be incurred upon delivery and acceptance of the ship under the shipbuilding contract by assuming, at delivery and acceptance, the debt indirectly incurred by the shipbuilder during the construction of the ship. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.3 billion, or approximately $1.4 billion based on the exchange rate at March 31, 2020. The loan will amortize semi-annually and will mature 12 years following delivery of the ship. Interest on the loan will accrue at a fixed rate of 3.00% (inclusive of margin). The sixth Oasis-class ship will have a capacity of approximately 5,700 berths and is currently scheduled for delivery in the fall of 2023. In December 2019, we entered into a credit agreement for the unsecured financing of the third Icon-class ship for up to 80% of the ship’s contract price. Finnvera plc, the official export credit agency of Finland, has agreed to guarantee 95% of the substantial majority of the financing, with a smaller portion of the financing to be 95% guaranteed by Euler Hermes, the official German export credit agency. The maximum loan amount under the facility is not to exceed the United States dollar equivalent of €1.4 billion, or approximately $1.6 billion based on the exchange rate at March 31, 2020. The loan, once funded, will amortize semi-annually and will mature 12 years following the delivery of the ship. Approximately 60% of the loan will accrue interest at a fixed rate of 3.29%. The balance of the loan will accrue interest at a floating rate of LIBOR plus 0.85%. The third Icon-class ship will have a capacity of approximately 5,600 berths and is currently scheduled for delivery in the second quarter of 2025. Our future capital commitments consist primarily of new ship orders. As of March 31, 2020, our Global Brands and Partner Brands have the following ships on order. COVID-19 has impacted shipyard operations and we expect that this will result in delivery delays of ships on order and will adjust the timing of our contractual ship deliveries:
As of March 31, 2020, the aggregate cost of our ships on order presented in the table above, excluding any ships on order by our Partner Brands, was approximately $13.8 billion, of which we had deposited $810.9 million as of such date. Approximately 63.6% of the aggregate cost was exposed to fluctuations in the Euro exchange rate at March 31, 2020. Refer to Note 13. Fair Value Measurements and Derivative Instruments for further information. In addition, as of March 31, 2020, we have an agreement in place with Chantiers de l'Atlantique to build an additional Edge-class ship for delivery in the 4th quarter of 2024, which is contingent upon completion of conditions precedent and financing. Litigation As previously reported in our Annual Report on Form 10-K for the year ended December 31, 2019, as updated by our Current Report on Form 8-K dated May 13, 2020, two lawsuits were filed against Royal Caribbean Cruises Ltd. in August 2019 in the U.S. District Court for the Southern District of Florida under Title III of the Cuban Liberty and Democratic Solidarity Act, also known as the Helms-Burton Act. The complaint filed by Havana Docks Corporation alleges it holds an interest in the Havana Cruise Port Terminal and the complaint filed by Javier Garcia-Bengochea alleges that he holds an interest in the Port of Santiago, Cuba, both of which were expropriated by the Cuban Government. The complaints further allege that Royal Caribbean Cruises Ltd. trafficked in those properties by embarking and disembarking passengers at these facilities. The plaintiffs seek all available statutory remedies, including the value of the expropriated property, plus interest, treble damages, attorneys’ fees and costs. Royal Caribbean Cruises Ltd. filed its answer to each complaint in October 2019. We believe we have meritorious defenses to the claims, and we intend to vigorously defend ourselves against them. We believe that it is unlikely that the outcome of these matters will have a material adverse impact to our financial condition, results of operations or cash flows. However, the outcome of litigation is inherently unpredictable and subject to significant uncertainties, and there can be no assurances that the final outcome of this case will not be material. We are also routinely involved in claims typical within the cruise vacation industry. The majority of these claims are covered by insurance. We believe the outcome of such claims, net of expected insurance recoveries, will not have a material adverse impact on our financial condition or results of operations and cash flows. Other If any person acquires ownership of more than 50% of our common stock or, subject to certain exceptions, during any 24-month period, a majority of our board of directors is no longer comprised of individuals who were members of our board of directors on the first day of such period, we may be obligated to prepay indebtedness outstanding under our credit facilities, which we may be unable to replace on similar terms. Our public debt securities also contain change of control provisions that would be triggered by a third-party acquisition of greater than 50% of our common stock coupled with a ratings downgrade. If this were to occur, it would have an adverse impact on our liquidity and operations.
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Restructuring Charges |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Charges | Restructuring Charges For the quarter ended March 31, 2020, we incurred restructuring charges of $5.5 million in connection with our international sales and marketing strategy. We did not incur restructuring charges for the quarter ended March 31, 2019. Centralization of Global Sales and Marketing Structure During the year ended December 31, 2019, we implemented a strategy related to the restructuring and centralization of our international sales and marketing structure. Activities related to this strategy focused on moving from a multi-brand sales model to a brand dedicated sales model, which resulted in the consolidation of some of our international offices and personnel reorganization among our sales and marketing teams. The personnel reorganization resulted in the recognition of a liability for one-time termination benefits during the twelve months ended December 31, 2019. We also incurred contract termination costs related to the closure of some of our international offices and other related costs consisting of legal and consulting fees to implement this initiative. As a result of these actions, we incurred restructuring exit costs of $12.0 million for the year ended December 31, 2019, which were reported within Marketing, selling and administrative expenses in our consolidated statements of comprehensive income (loss). As of March 31, 2020, we incurred $5.5 million and we expected to incur $5.6 million additional costs as it relates to the restructuring activities of this strategy. The following table summarizes our restructuring exit costs (in thousands):
Operating Expense Reduction in Workforce In April 2020, we reduced our US shoreside workforce by approximately 23% through a combination of permanent layoffs and 90-day furloughs with paid benefits. We incurred severance costs of $26.9 million in April 2020.
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(Loss) Earnings Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation Between Basic and Diluted Earnings Per Share | A reconciliation between basic and diluted (loss) earnings per share is as follows (in thousands, except per share data):
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Redeemable Noncontrolling Interest (Tables) |
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Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Schedule of Redeemable Noncontrolling Interest | The following table presents changes in the redeemable noncontrolling interest as of March 31, 2020 (in thousands):
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CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares |
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Mar. 31, 2020 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
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Statement of Stockholders' Equity [Abstract] | ||||
Common stock dividends declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.70 | $ 0.70 |
Fair Value Measurements and Derivative Instruments - Offsetting of Derivative Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Offsetting of Financial Assets under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Assets Presented in the Consolidated Balance Sheet | $ 40,960 | $ 39,994 |
Gross Amount of Eligible Offsetting Recognized Derivative Liabilities | (40,960) | (39,994) |
Cash Collateral Received | 0 | 0 |
Net Amount of Derivative Assets | 0 | 0 |
Offsetting of Financial Liabilities under Master Netting Agreements [Abstract] | ||
Gross Amount of Derivative Liabilities Presented in the Consolidated Balance Sheet | (557,492) | (257,728) |
Gross Amount of Eligible Offsetting Recognized Derivative Assets | 40,960 | 39,994 |
Cash Collateral Pledged | 0 | 0 |
Net Amount of Derivative Liabilities | $ (516,532) | $ (217,734) |
Leases - Narrative (Details) $ in Millions |
3 Months Ended |
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Mar. 31, 2020
USD ($)
ship
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Lessee, Lease, Description [Line Items] | |
Right-of-use assets, impairment | $ 45.9 |
Number of ships under finance leases | ship | 2 |
Additional lease term | 6 years |
Variable lease cost | $ 25.6 |
Pullmantur Holdings | |
Lessee, Lease, Description [Line Items] | |
Percentage of subsidiary which has been sold | 51.00% |
Minimum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Minimum | Berthing Agreement | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 1 year |
Maximum | Real Estate | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 10 years |
Maximum | Berthing Agreement | |
Lessee, Lease, Description [Line Items] | |
Renewal term | 20 years |
Other Assets - Related Party Transactions (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Other Assets [Abstract] | ||
Revenues | $ 7,411 | $ 11,882 |
Expenses | $ 782 | $ 974 |
(Loss) Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Earnings Per Share [Abstract] | ||
Net income | $ (1,444,479) | $ 249,681 |
Weighted-average common shares outstanding (in shares) | 209,097,000 | 209,322,000 |
Dilutive effect of stock-based awards and stock options (in shares) | 0 | 552,000 |
Diluted weighted-average shares outstanding (in shares) | 209,097,000 | 209,874,000 |
Basic (loss) earnings per share (in dollars per share) | $ (6.91) | $ 1.19 |
Diluted (loss) earnings per share (in dollars per share) | $ (6.91) | $ 1.19 |
Antidilutive securities (in shares) | 877,000 | 0 |
Leases (Tables) |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Expense and Cash Flow Information | The components of lease expense were as follows (in thousands):
Weighted average of the remaining lease terms and weighted average discount rates are as follows:
Supplemental cash flow information related to leases is as follows (in thousands):
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Schedule of Maturities, Operating Leases | As of March 31, 2020, maturities related to lease liabilities were as follows (in thousands):
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Schedule of Maturities, Financial Leases | As of March 31, 2020, maturities related to lease liabilities were as follows (in thousands):
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Fair Value Measurements and Derivative Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements and Derivative Instruments | Fair Value Measurements and Derivative Instruments Fair Value Measurements The estimated fair value of our financial instruments that are not measured at fair value, categorized based upon the fair value hierarchy, are as follows (in thousands):
(1) Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2) Inputs other than quoted prices included within Level 1 that are observable for the liability, either directly or indirectly. For unsecured revolving credit facilities and unsecured term loans, fair value is determined utilizing the income valuation approach. This valuation model takes into account the contract terms of our debt such as the debt maturity and the interest rate on the debt. The valuation model also takes into account the creditworthiness of the Company. (3) Inputs that are unobservable. The Company did not use any Level 3 inputs as of March 31, 2020 and December 31, 2019. (4) Consists of cash and marketable securities with original maturities of less than 90 days. (5) Consists of unsecured revolving credit facilities, senior notes, senior debentures and term loans. These amounts do not include our capital lease obligations or commercial paper. Other Financial Instruments The carrying amounts of accounts receivable, accounts payable, accrued interest, accrued expenses and commercial paper approximate fair value at March 31, 2020 and December 31, 2019. Assets and liabilities that are recorded at fair value have been categorized based upon the fair value hierarchy. The following table presents information about the Company’s financial instruments recorded at fair value on a recurring basis (in thousands):
(1)Inputs based on quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access. Valuation of these items does not entail a significant amount of judgment. (2)Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. For foreign currency forward contracts, interest rate swaps and fuel swaps, fair value is derived using valuation models that utilize the income valuation approach. These valuation models take into account the contract terms, such as maturity, as well as other inputs, such as foreign exchange rates and curves, fuel types, fuel curves and interest rate yield curves. Derivative instrument fair values take into account the creditworthiness of the counterparty and the Company. (3)Inputs that are unobservable. (4)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. (5)Consists of foreign currency forward contracts, interest rate swaps and fuel swaps. (6)The contingent consideration related to the Silversea Cruises acquisition was estimated by applying a Monte-Carlo simulation method using our closing stock price along with significant inputs not observable in the market, including the probability of achieving the milestones and estimated future operating results. The Monte-Carlo simulation is a generally accepted statistical technique used to generate a defined number of valuation paths in order to develop a reasonable estimate of fair value. The reported fair values are based on a variety of factors and assumptions. Accordingly, the fair values may not represent actual values of the financial instruments that could have been realized as of March 31, 2020 or December 31, 2019, or that will be realized in the future, and do not include expenses that could be incurred in an actual sale or settlement. Nonfinancial Instruments Recorded at Fair Value on a Nonrecurring Basis The following table presents information about the Company’s nonfinancial instruments recorded at fair value on a nonrecurring basis (in thousands):
_________________________________________________________________________________________________________ (1) We estimated the fair value of the Silversea Cruises reporting unit using a probability-weighted discounted cash flow model in combination with a market based valuation approach. The principal assumptions used in the discounted cash flow model are projected operating results, weighted-average cost of capital and terminal value. Significantly impacting these assumptions were changes in market conditions associated with COVID-19 and its impact to the business and related operating plans. The discounted cash flow model used our 2020 projected operating results as a base. To that base we added future years’ cash flows through 2030 assuming multiple revenue and expense scenarios that reflect the impact of different global economic environments for this period on Silversea Cruises' reporting unit. We assigned a probability to each revenue and expense scenario. We discounted the projected cash flows using rates specific to Silversea Cruises' reporting unit based on its weighted-average cost of capital, which was determined to be 12.75%. A significant input in performing the fair value assessment for the Silversea Cruises goodwill was forecasted operating results, which takes into consideration expected ship deliveries, including ship options. (2) We estimated the fair value of our indefinite-life intangible asset using a discounted cash flow model and the relief-from-royalty method. The trade name relates to Silversea Cruises and we used a discount rate of 13.25%, comparable to the rate used in valuing the Silversea Cruises reporting unit. Significant inputs in performing the fair value assessment for the trade name were the royalty rate of 3.0% and forecasted net revenues, which takes into consideration expected ship deliveries, including ship options. (3) We estimated the fair value of two of our vessels using a blended indication from the income and cost approaches. The fair value of the remaining vessels was estimated primarily based on their orderly liquidation values. A significant input in performing the fair value assessments for these vessels was management's expected use of the vessels, which takes into consideration forecasted operating results. (4) Impairments to our right-of-use assets relate to certain of our berthing arrangements. We estimated the fair value of these right-of-use assets using estimated projected discounted cash flows. A significant input in performing the fair value assessments for these assets was our expected passenger headcount. (5) We estimated the fair value of our other than temporarily impaired equity-method investments using a discounted cash flow model. A significant input in performing the fair value assessments for these assets was forecasted operating results for these investments. We believe that our estimates and judgments related to the fair values of goodwill, intangibles and long-lived assets discussed above are reasonable. A change in the conditions, circumstances or strategy which influence determinations of fair value, may result in the recognition of additional impairment charges. Master Netting Agreements We have master International Swaps and Derivatives Association (“ISDA”) agreements in place with our derivative instrument counterparties. These ISDA agreements generally provide for final close out netting with our counterparties for all positions in the case of default or termination of the ISDA agreement. We have determined that our ISDA agreements provide us with rights of setoff on the fair value of derivative instruments in a gain position and those in a loss position with the same counterparty. We have elected not to offset such derivative instrument fair values in our consolidated balance sheets. See Credit Related Contingent Features for further discussion on contingent collateral requirements for our derivative instruments. The following table presents information about the Company’s offsetting of financial assets under master netting agreements with derivative counterparties (in thousands):
The following table presents information about the Company’s offsetting of financial liabilities under master netting agreements with derivative counterparties (in thousands):
Concentrations of Credit Risk We monitor our credit risk associated with financial and other institutions with which we conduct significant business and, to minimize these risks, we select counterparties with credit risks acceptable to us and we seek to limit our exposure to an individual counterparty. Credit risk, including but not limited to counterparty nonperformance under derivative instruments, our credit facilities and new ship progress payment guarantees, is not considered significant, as we primarily conduct business with large, well-established financial institutions, insurance companies and export credit agencies many of which we have long-term relationships with and which have credit risks acceptable to us or where the credit risk is spread out among a large number of counterparties. As of March 31, 2020 we had counterparty credit risk exposure under our derivative instruments of $19.2 million, which were limited to the cost of replacing the contracts in the event of non-performance by the counterparties to the contracts, the majority of which are currently our lending banks. We do not anticipate nonperformance by any of our significant counterparties. In addition, we have established guidelines we follow regarding credit ratings and instrument maturities to maintain safety and liquidity. We do not normally require collateral or other security to support credit relationships; however, in certain circumstances this option is available to us. Derivative Instruments We are exposed to market risk attributable to changes in interest rates, foreign currency exchange rates and fuel prices. We try to mitigate these risks through a combination of our normal operating and financing activities and through the use of derivative financial instruments pursuant to our hedging practices and policies. The financial impact of these hedging instruments is primarily offset by corresponding changes in the underlying exposures being hedged. We achieve this by closely matching the notional amount, term and conditions of the derivative instrument with the underlying risk being hedged. Although certain of our derivative financial instruments do not qualify or are not accounted for under hedge accounting, our objective is not to hold or issue derivative financial instruments for trading or other speculative purposes. We enter into various forward, swap and option contracts to manage our interest rate exposure and to limit our exposure to fluctuations in foreign currency exchange rates and fuel prices. These instruments are recorded on the balance sheet at their fair value and the vast majority are designated as hedges. We also use non-derivative financial instruments designated as hedges of our net investment in our foreign operations and investments. At inception of the hedge relationship, a derivative instrument that hedges the exposure to changes in the fair value of a firm commitment or a recognized asset or liability is designated as a fair value hedge. A derivative instrument that hedges a forecasted transaction or the variability of cash flows related to a recognized asset or liability is designated as a cash flow hedge. Changes in the fair value of derivatives that are designated as fair value hedges are offset against changes in the fair value of the underlying hedged assets, liabilities or firm commitments. Gains and losses on derivatives that are designated as cash flow hedges are recorded as a component of Accumulated other comprehensive loss until the underlying hedged transactions are recognized in earnings. The foreign currency transaction gain or loss of our non-derivative financial instruments and the changes in the fair value of derivatives designated as hedges of our net investment in foreign operations and investments are recognized as a component of Accumulated other comprehensive loss along with the associated foreign currency translation adjustment of the foreign operation or investment, with the amortization of excluded components affecting earnings. On an ongoing basis, we assess whether derivatives used in hedging transactions are "highly effective" in offsetting changes in the fair value or cash flow of hedged items. For our net investment hedges, we use the dollar offset method to measure effectiveness. For all other hedging programs, we use the long-haul method to assess hedge effectiveness using regression analysis for each hedge relationship. The methodology for assessing hedge effectiveness is applied on a consistent basis for each one of our hedging programs (i.e., interest rate, foreign currency ship construction, foreign currency net investment and fuel). For our regression analyses, we use an observation period of up to three years, utilizing market data relevant to the hedge horizon of each hedge relationship. High effectiveness is achieved when a statistically valid relationship reflects a high degree of offset and correlation between the changes in the fair values of the derivative instrument and the hedged item. If it is determined that a derivative is not highly effective as a hedge or hedge accounting is discontinued, any change in fair value of the derivative since the last date at which it was determined to be effective is recognized in earnings. Cash flows from derivative instruments that are designated as fair value or cash flow hedges are classified in the same category as the cash flows from the underlying hedged items. In the event that hedge accounting is discontinued, cash flows subsequent to the date of discontinuance are classified within investing activities. Cash flows from derivative instruments not designated as hedging instruments are classified as investing activities. We consider the classification of the underlying hedged item’s cash flows in determining the classification for the designated derivative instrument’s cash flows. We classify derivative instrument cash flows from hedges of benchmark interest rate or hedges of fuel expense as operating activities due to the nature of the hedged item. Likewise, we classify derivative instrument cash flows from hedges of foreign currency risk on our newbuild ship payments as investing activities. Interest Rate Risk Our exposure to market risk for changes in interest rates primarily relates to our debt obligations including future interest payments. At March 31, 2020 and December 31, 2019, approximately 47.0% and 62.1%, respectively, of our debt was effectively fixed. We use interest rate swap agreements to modify our exposure to interest rate movements and to manage our interest expense. Market risk associated with our fixed rate debt is the potential increase in fair value resulting from a decrease in interest rates. We use interest rate swap agreements that effectively convert a portion of our fixed-rate debt to a floating-rate basis to manage this risk. At March 31, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following fixed-rate debt instruments:
These interest rate swap agreements are accounted for as fair value hedges. Market risk associated with our long-term floating rate debt is the potential increase in interest expense from an increase in interest rates. We use interest rate swap agreements that effectively convert a portion of our floating-rate debt to a fixed-rate basis to manage this risk. At March 31, 2020 and December 31, 2019, we maintained interest rate swap agreements on the following floating-rate debt instruments:
(1)Interest rate swap agreements hedging the Euro-denominated term loan for Harmony of the Seas include EURIBOR zero-floor matching the hedged debt EURIBOR zero-floor. Amount presented is based on the exchange rate as of March 31, 2020. (2)Interest rate swap agreements hedging the term loan of Odyssey of the Seas include LIBOR zero-floors matching the debt LIBOR zero-floor. The effective dates of the $460.0 million and $191.7 million interest rate swap agreements are October 2020 and October 2022, respectively. The anticipated unsecured term loan for the financing of Odyssey of the Seas was initially expected to be drawn in October 2020. However, due to the impact of COVID-19 to shipyard operations, there may be a delay in the ship delivery. These interest rate swap agreements are accounted for as cash flow hedges. The notional amount of interest rate swap agreements related to outstanding debt and our current unfunded financing arrangements as of March 31, 2020 and December 31, 2019 was $3.7 billion and $3.5 billion, respectively. Foreign Currency Exchange Rate Risk Derivative Instruments Our primary exposure to foreign currency exchange rate risk relates to our ship construction contracts denominated in Euros, our foreign currency denominated debt and our international business operations. We enter into foreign currency forward contracts to manage portions of the exposure to movements in foreign currency exchange rates. As of March 31, 2020, the aggregate cost of our ships on order was $13.8 billion, of which we had deposited $810.9 million as of such date. These amounts do not include any ships placed on order that are contingent upon completion of conditions precedent and/or financing, any ships on order by our Partner Brands and any ships on order placed by Silversea Cruises during the reporting lag period. Refer to Note 10. Commitments and Contingencies, for further information on our ships on order. At March 31, 2020 and December 31, 2019, approximately 63.6% and 65.9%, respectively, of the aggregate cost of the ships under construction was exposed to fluctuations in the Euro exchange rate. Our foreign currency forward contract agreements are accounted for as cash flow or net investment hedges depending on the designation of the related hedge. On a regular basis, we enter into foreign currency forward contracts and, from time to time, we utilize cross-currency swap agreements and collar options to minimize the volatility resulting from the remeasurement of net monetary assets and liabilities denominated in a currency other than our functional currency or the functional currencies of our foreign subsidiaries. During the first quarter of 2020, we maintained an average of approximately $549.8 million of these foreign currency forward contracts. These instruments are not designated as hedging instruments. For the quarters ended March 31, 2020 and 2019, changes in the fair value of the foreign currency forward contracts resulted in a loss and a gain of $(52.7) million and $5.0 million, respectively. These amounts were recognized in earnings within Other income (expense) in our consolidated statements of comprehensive income (loss). We consider our investments in our foreign operations to be denominated in relatively stable currencies and to be of a long-term nature. As of March 31, 2020, we maintained foreign currency forward contracts and designated them as hedges of a portion of our net investments primarily in TUI Cruises of €245.0 million, or approximately $268.8 million based on the exchange rate at March 31, 2020. These forward currency contracts mature in October 2021. The notional amount of outstanding foreign exchange contracts, excluding the forward contracts entered into to minimize remeasurement volatility, as of both March 31, 2020 and December 31, 2019 was $3.7 billion and $2.9 billion, respectively. Non-Derivative Instruments We also address the exposure of our investments in foreign operations by denominating a portion of our debt in our subsidiaries’ and investments’ functional currencies and designating it as a hedge of these subsidiaries and investments. We had designated debt as a hedge of our net investments primarily in TUI Cruises of €286.0 million, or approximately $313.8 million, as of March 31, 2020. As of December 31, 2019, we had designated debt as a hedge of our net investments in TUI Cruises of €319.0 million, or approximately $358.1 million. Fuel Price Risk Our exposure to market risk for changes in fuel prices relates primarily to the consumption of fuel on our ships. We use fuel swap agreements to mitigate the financial impact of fluctuations in fuel prices. Our fuel swap agreements are generally accounted for as cash flow hedges. In the case that our hedged forecasted fuel consumption is not probable of occurring, hedge accounting will be discontinued and the related accumulated other comprehensive gain or loss will be reclassified to Other income (expense) immediately. At March 31, 2020, we have hedged the variability in future cash flows for certain forecasted fuel transactions occurring through 2023. As of March 31, 2020 and December 31, 2019, we had the following outstanding fuel swap agreements:
(1) As a result of the COVID-19 pandemic, we discontinued cash flow hedge accounting on 0.2 million metric tons of our fuel swap agreements maturing in 2020 as of March 31, 2020.
At March 31, 2020, $70.8 million of estimated unrealized loss associated with our cash flow hedges pertaining to fuel swap agreements is expected to be reclassified to earnings from Accumulated other comprehensive loss within the next twelve months. Reclassification is expected to occur as the result of fuel consumption associated with our hedged forecasted fuel purchases. The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets were as follows (in thousands):
(1)Accounting Standard Codification 815-20 “Derivatives and Hedging.” The location and amount of gain or (loss) recognized in income on fair value and cash flow hedging relationships were as follows (in thousands):
The carrying value and line item caption of non-derivative instruments designated as hedging instruments recorded within our consolidated balance sheets were as follows (in thousands):
The effect of derivative instruments qualifying and designated as hedging instruments and the related hedged items in fair value hedges on the consolidated statements of comprehensive income (loss) was as follows (in thousands):
The fair value and line item caption of derivative instruments recorded within our consolidated balance sheets for the cumulative basis adjustment for fair value hedges were as follows (in thousands):
The effect of derivative instruments qualifying and designated as cash flow hedging instruments on the consolidated financial statements was as follows (in thousands):
The table below represents amounts excluded from the assessment of effectiveness for our net investment hedging instruments for which the difference between changes in fair value and periodic amortization is recorded in accumulated other comprehensive income (loss) (in thousands):
The effect of non-derivative instruments qualifying and designated as net investment hedging instruments on the consolidated financial statements was as follows (in thousands):
There was no amount recognized in income (ineffective portion and amount excluded from effectiveness testing) for the quarters ended March 31, 2020. The effect of derivatives not designated as hedging instruments on the consolidated financial statements was as follows (in thousands):
The current suspension of our cruise operations due to the COVID-19 pandemic resulted in changes to our forecasted fuel purchases. As of March 31, 2020, we discontinued cash flow hedge accounting on 0.2 million metric tons of our fuel swap agreements. The discontinuance of the hedging relationship for these fuel swap agreements resulted in the reclassification of a net $54.9 million loss from Accumulated other comprehensive loss to Other expense. Credit Related Contingent Features Our current interest rate derivative instruments require us to post collateral if our Standard & Poor’s and Moody’s credit ratings fall below specified levels. Specifically, under most of our agreements, if on the fifth anniversary of executing a derivative instrument, or on any succeeding fifth-year anniversary, our credit ratings for our senior unsecured debt is rated below BBB- by Standard & Poor’s and Baa3 by Moody’s, then the counterparty will periodically demand that we post collateral in an amount equal to the difference between (i) the net market value of all derivative transactions with such counterparty that have reached their fifth year anniversary, to the extent negative, and (ii) the applicable minimum call amount. The amount of collateral required to be posted will change as, and to the extent, our net liability position increases or decreases by more than the applicable minimum call amount. If our credit rating for our senior unsecured debt is subsequently equal to or above BBB- by Standard & Poor’s or Baa3 by Moody’s, then any collateral posted at such time will be released to us and we will no longer be required to post collateral unless we meet the collateral trigger requirement, generally, at the next fifth-year anniversary.
At March 31, 2020, our senior unsecured debt credit rating was BBB- by Standard & Poor's and Baa3 by Moody's and as such we were not required to post collateral. We currently have five interest rate derivative hedges that have a term of at least five years. On April 2, 2020, S&P Global downgraded us from BBB- to BB and on May 13, 2020, Moody’s downgraded us from Baa3 to Ba2. Based on our current projected fair value of certain derivative instruments in net liability positions, on or prior to September 23, 2020, we will be required to post collateral of approximately $80.4 million.
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Revenues (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following table disaggregates our total revenues by geographic regions where we provide cruise itineraries (in thousands):
(1)Includes the United States, Canada, Mexico and the Caribbean. (2)Includes Southeast Asia (e.g., Singapore, Thailand and the Philippines), East Asia (e.g., China and Japan), South Asia (e.g., India and Pakistan) and Oceania (e.g., Australia and Fiji Islands) regions. (3)Includes European countries (e.g., Nordics, Germany, France, Italy, Spain and the United Kingdom). (4)Includes seasonality impacted itineraries primarily in South and Latin American countries. (5)Includes revenues primarily related to cancellation fees, vacation protection insurance, pre- and post-cruise tours and fees for operating certain port facilities. Amounts also include revenues related to our bareboat charter, procurement and management related services we perform on behalf of our unconsolidated affiliates. Refer to Note 6. Other Assets for more information on our unconsolidated affiliates. Passenger ticket revenues are attributed to geographic areas based on where the reservation originates. For the quarters ended March 31, 2020 and 2019, our guests were sourced from the following areas:
(1)No other individual country's revenue exceeded 10% for the quarters ended March 31, 2020 and 2019.
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Total revenues | $ 2,032,750 | $ 2,439,767 |
Cruise operating expenses: | ||
Total cruise operating expenses | 1,510,819 | 1,413,704 |
Marketing, selling and administrative expenses | 395,890 | 414,947 |
Depreciation and amortization expenses | 324,330 | 292,285 |
Impairment and credit losses | 1,108,118 | 0 |
Operating (Loss) Income | (1,306,407) | 318,831 |
Other income (expense): | ||
Interest income | 5,534 | 9,784 |
Interest expense, net of interest capitalized | (92,911) | (100,415) |
Equity investment (loss) income | (10,392) | 33,694 |
Other expense | (32,859) | (5,088) |
Total other income (expense) | (130,628) | (62,025) |
Net (Loss) Income | (1,437,035) | 256,806 |
Less: Net Income attributable to noncontrolling interest | 7,444 | 7,125 |
Net (Loss) Income attributable to Royal Caribbean Cruises Ltd. | $ (1,444,479) | $ 249,681 |
(Loss) Earnings per Share: | ||
Basic (in dollars per share) | $ (6.91) | $ 1.19 |
Diluted (in dollars per share) | $ (6.91) | $ 1.19 |
Weighted-Average Shares Outstanding: | ||
Basic (in shares) | 209,097 | 209,322 |
Diluted (in shares) | 209,097 | 209,874 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | $ 10,290 | $ 564 |
Change in defined benefit plans | (7,589) | (653) |
(Loss) gain on cash flow derivative hedges | (300,605) | 48,843 |
Total other comprehensive (loss) income | (297,904) | 48,754 |
Comprehensive (Loss) Income | (1,734,939) | 305,560 |
Less: Comprehensive Income attributable to noncontrolling interest | 7,444 | 7,125 |
Comprehensive (Loss) Income attributable to Royal Caribbean Cruises Ltd. | (1,742,383) | 298,435 |
Passenger ticket revenues | ||
Total revenues | 1,376,851 | 1,709,984 |
Onboard and other revenues | ||
Total revenues | 655,899 | 729,783 |
Cruise operating expenses: | ||
Total cruise operating expenses | 123,718 | 135,170 |
Commissions, transportation and other | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 317,129 | 363,155 |
Payroll and related | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 330,390 | 269,532 |
Food | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 121,316 | 139,534 |
Fuel | ||
Cruise operating expenses: | ||
Total cruise operating expenses | 194,268 | 160,171 |
Other operating | ||
Cruise operating expenses: | ||
Total cruise operating expenses | $ 423,998 | $ 346,142 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Total |
Common Stock |
Paid-in Capital |
Retained Earnings |
Accumulated Other Comprehensive Loss |
Treasury Stock |
---|---|---|---|---|---|---|
Beginning balance at Dec. 31, 2018 | $ 11,105,461 | $ 2,358 | $ 3,420,900 | $ 10,263,282 | $ (627,734) | $ (1,953,345) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | 11,525 | 6 | 11,519 | |||
Common stock dividends | (146,351) | (146,351) | ||||
Changes related to cash flow derivative hedges | 48,843 | 48,843 | ||||
Change in defined benefit plans | (653) | (653) | ||||
Foreign currency translation adjustments | 564 | 564 | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | 249,681 | 249,681 | ||||
Ending balance at Mar. 31, 2019 | 11,269,070 | 2,364 | 3,432,419 | 10,366,612 | (578,980) | (1,953,345) |
Beginning balance at Dec. 31, 2019 | 12,163,846 | 2,365 | 3,493,959 | 11,523,326 | (797,713) | (2,058,091) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Activity related to employee stock plans | (20,699) | 7 | (20,706) | |||
Common stock dividends | (163,089) | (163,089) | ||||
Changes related to cash flow derivative hedges | (300,605) | (300,605) | ||||
Change in defined benefit plans | (7,589) | (7,589) | ||||
Foreign currency translation adjustments | 10,290 | 10,290 | ||||
Purchases of treasury stock | (5,900) | (5,900) | ||||
Net Income attributable to Royal Caribbean Cruises Ltd. | (1,444,479) | (1,444,479) | ||||
Ending balance at Mar. 31, 2020 | $ 10,231,775 | $ 2,372 | $ 3,473,253 | $ 9,915,758 | $ (1,095,617) | $ (2,063,991) |
Fair Value Measurements and Derivative Instruments - Nonrecurring (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill, impairment | $ 576,208 | |||||||||||
Indefinite-life intangible asset, impairment | 30,800 | |||||||||||
Right-of-use assets, impairment | 45,900 | |||||||||||
Equity method investments, impairment | 39,700 | |||||||||||
Total, impairment | 1,108,118 | $ 0 | ||||||||||
Silversea Cruises | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill, impairment | 576,208 | |||||||||||
Nonrecurring | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-life intangible asset, impairment | [1] | 30,800 | ||||||||||
Long-lived assets - vessels, impairment | [2] | 417,057 | ||||||||||
Right-of-use assets, impairment | [3] | 45,945 | ||||||||||
Equity method investments, impairment | [4] | 39,735 | ||||||||||
Total, impairment | 1,109,745 | |||||||||||
Nonrecurring | Silversea Cruises | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill, impairment | [5] | 576,208 | ||||||||||
Nonrecurring | Total Carrying Amount | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-life intangible asset | 318,700 | |||||||||||
Long-lived assets - vessels | [2] | 156,270 | ||||||||||
Right-of-use assets | [3] | 57,068 | ||||||||||
Equity method investments | [4] | 0 | ||||||||||
Total | 1,040,617 | |||||||||||
Nonrecurring | Total Carrying Amount | Silversea Cruises | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Silversea Cruises Goodwill | [5] | 508,579 | ||||||||||
Nonrecurring | Total Fair Value | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-life intangible asset | 318,700 | |||||||||||
Long-lived assets - vessels | [2] | 156,270 | ||||||||||
Right-of-use assets | [3] | 57,068 | ||||||||||
Equity method investments | [4] | 0 | ||||||||||
Total | 1,040,617 | |||||||||||
Nonrecurring | Total Fair Value | Silversea Cruises | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Silversea Cruises Goodwill | [5] | 508,579 | ||||||||||
Nonrecurring | Level 3 | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-life intangible asset | [1] | 318,700 | ||||||||||
Long-lived assets - vessels | [2] | 156,270 | ||||||||||
Right-of-use assets | [3] | 57,068 | ||||||||||
Equity method investments | [4] | 0 | ||||||||||
Total | $ 1,040,617 | |||||||||||
Nonrecurring | Level 3 | Discount rate | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-lived intangible assets, measurement input | 13.25% | |||||||||||
Nonrecurring | Level 3 | Royalty fee percentage | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Indefinite-lived intangible assets, measurement input | 3.00% | |||||||||||
Nonrecurring | Level 3 | Silversea Cruises | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Silversea Cruises Goodwill | [5] | $ 508,579 | ||||||||||
Nonrecurring | Level 3 | Silversea Cruises | Weighted average cost of capital | ||||||||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||||||||
Goodwill, measurement input | 12.75% | |||||||||||
|
Fair Value Measurements and Derivative Instruments - Fuel Price Risk (Details) - Fuel Swap Agreements $ in Millions |
Mar. 31, 2020
USD ($)
T
|
Dec. 31, 2019
T
|
---|---|---|
Derivative Instruments | ||
Estimated unrealized net loss associated with cash flow hedges pertaining to fuel swap agreements expected to be reclassified to earnings from accumulated other comprehensive income loss | $ | $ (70.8) | |
2020 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 596,850 | 830,500 |
Percentage of projected requirements | 60.00% | 54.00% |
2021 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 614,900 | 488,900 |
Percentage of projected requirements | 39.00% | 30.00% |
2022 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 404,300 | 322,900 |
Percentage of projected requirements | 23.00% | 19.00% |
2023 | ||
Derivative Instruments | ||
Fuel Swap Agreements (metric tons) | 82,400 | 82,400 |
Percentage of projected requirements | 5.00% | 5.00% |
Debt - Summary of Debt (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2020 |
Feb. 29, 2020 |
Dec. 31, 2019 |
|
Debt Instrument [Line Items] | |||
Total debt | $ 16,283,622,000 | $ 11,241,483,000 | |
Less: unamortized debt issuance costs | (254,750,000) | (206,607,000) | |
Total debt, net of unamortized debt issuance costs | 16,028,872,000 | 11,034,876,000 | |
Less—current portion including commercial paper | (3,755,550,000) | (2,620,766,000) | |
Long-term portion | $ 12,273,322,000 | $ 8,414,110,000 | |
Debt, Weighted Average Interest Rate | 3.98% | 3.99% | |
Commercial paper | |||
Debt Instrument [Line Items] | |||
Current interest rate | 1.93% | ||
Long-term debt, gross | $ 343,557,000 | $ 1,434,180,000 | |
Total fixed rate debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | 5,905,851,000 | 5,215,452,000 | |
Unsecured senior notes | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 1,767,059,000 | 1,746,280,000 | |
Unsecured senior notes | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.65% | ||
Unsecured senior notes | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.50% | ||
Secured senior notes | |||
Debt Instrument [Line Items] | |||
Interest rate | 7.25% | ||
Long-term debt, gross | $ 658,645,000 | 662,398,000 | |
Unsecured term loans | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 3,480,147,000 | 2,806,774,000 | |
Unsecured term loans | Minimum | |||
Debt Instrument [Line Items] | |||
Interest rate | 2.53% | ||
Unsecured term loans | Maximum | |||
Debt Instrument [Line Items] | |||
Interest rate | 5.41% | ||
Total variable rate debt | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 10,151,300,000 | 5,795,773,000 | |
Unsecured revolving credit facilities | |||
Debt Instrument [Line Items] | |||
Current interest rate | 2.79% | ||
Long-term debt, gross | $ 3,475,000,000 | 165,000,000 | |
Maximum borrowing capacity | $ 3,500,000,000 | ||
Facility fee | 0.15% | ||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | |||
Debt Instrument [Line Items] | |||
Current interest rate | 2.55% | ||
Maximum borrowing capacity | $ 1,900,000,000 | $ 1,700,000,000 | |
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2024 | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.10% | ||
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2022 | |||
Debt Instrument [Line Items] | |||
Current interest rate | 2.55% | ||
Maximum borrowing capacity | $ 1,600,000,000 | $ 1,200,000,000 | |
Unsecured revolving credit facilities | Unsecured Revolving Credit Facility Due 2022 | LIBOR | |||
Debt Instrument [Line Items] | |||
Debt instrument, basis spread on variable rate | 1.10% | ||
USD secured term loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 2,200,000,000 | 0 | |
USD secured term loan | Minimum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 2.25% | ||
USD secured term loan | Maximum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 2.75% | ||
USD unsecured term loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 3,471,256,000 | 3,519,853,000 | |
USD unsecured term loan | Minimum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 1.55% | ||
USD unsecured term loan | Maximum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 5.64% | ||
Euro unsecured term loan | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 661,487,000 | 676,740,000 | |
Euro unsecured term loan | Minimum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 1.15% | ||
Euro unsecured term loan | Maximum | |||
Debt Instrument [Line Items] | |||
Current interest rate | 1.58% | ||
Finance lease liabilities | |||
Debt Instrument [Line Items] | |||
Long-term debt, gross | $ 226,471,000 | $ 230,258,000 |
Other Assets - Narrative (Details) € in Millions |
1 Months Ended | 3 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Feb. 07, 2020
EUR (€)
ship
|
Apr. 30, 2016 |
Mar. 31, 2020
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2020
EUR (€)
|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2019
EUR (€)
|
Dec. 31, 2019
USD ($)
|
|
Other Assets | ||||||||
Equity method investments, other than temporary impairment | $ 39,700,000 | |||||||
Proceeds from collection of advance to affiliate | $ 5,160,000 | $ 11,824,000 | ||||||
Loan loss allowance | $ 5,700,000 | $ 5,600,000 | ||||||
TUI Cruises GmbH joint venture | ||||||||
Other Assets | ||||||||
Percentage of ownership interest | 50.00% | 50.00% | ||||||
TUI Cruises GmbH joint venture | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Percentage of ownership interest | 50.00% | 50.00% | ||||||
Investments in entity | $ 613,900,000 | 598,100,000 | ||||||
Underlying equity in net assets | 467,900,000 | 443,100,000 | ||||||
Advances to affiliate | € 130.8 | $ 143,500,000 | € 133.2 | 149,500,000 | ||||
TUI Cruises GmbH joint venture | TUI cruise ships | ||||||||
Other Assets | ||||||||
Restriction on reduction of current ownership interest (as a percent) | 37.55% | 37.55% | ||||||
TUI Cruises GmbH joint venture | Splendour of the Seas | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Debt instrument, term | 10 years | |||||||
Pullmantur Holdings | ||||||||
Other Assets | ||||||||
Percentage of ownership interest | 49.00% | 49.00% | ||||||
Percentage of subsidiary which has been sold | 51.00% | 51.00% | ||||||
Loan loss allowance | $ 38,100,000 | |||||||
Pullmantur Holdings | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Advances to affiliate | € 15.0 | $ 16,500,000 | ||||||
Interest rate on loan provided to related party (as a percent) | 6.50% | 6.50% | ||||||
Debt, guaranteed percentage | 51.00% | |||||||
Retained ownership percentage of subsidiary after sale | 49.00% | |||||||
Maximum loss exposure | 49,700,000 | |||||||
Proceeds from credit facility | € 11.4 | $ 12,500,000 | € 11.0 | 12,300,000 | ||||
Grand Bahamas Shipyard Ltd. | ||||||||
Other Assets | ||||||||
Proceeds from collection of advance to affiliate | $ 0 | 6,600,000 | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Percentage of ownership interest | 40.00% | 40.00% | ||||||
Investments in entity | $ 24,000,000.0 | 47,900,000 | ||||||
Underlying equity in net assets | 27,000,000.0 | |||||||
Related party transaction, payment amount for ship repair and maintenance | 200,000 | $ 40,300,000 | ||||||
Equity method investments, other than temporary impairment | $ 30,100,000 | |||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | ||||||||
Other Assets | ||||||||
Advances to affiliate | $ 20,900,000 | |||||||
Interest rate on loan provided to related party (as a percent) | 5.75% | 5.75% | ||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | LIBOR | Minimum | ||||||||
Other Assets | ||||||||
Debt instrument, basis spread on variable rate | 2.00% | |||||||
Grand Bahamas Shipyard Ltd. | Not Primary Beneficiary | Non-accrual status of advances to affiliates | LIBOR | Maximum | ||||||||
Other Assets | ||||||||
Debt instrument, basis spread on variable rate | 3.75% | |||||||
Splendour of the Seas | TUI Cruises GmbH joint venture | Not Primary Beneficiary | ||||||||
Other Assets | ||||||||
Interest rate on loan provided to related party (as a percent) | 6.25% | |||||||
Debt, guaranteed percentage | 50.00% | |||||||
Springwater Capital LLC | Pullmantur Holdings | ||||||||
Other Assets | ||||||||
Percentage of ownership interest | 51.00% | 51.00% | ||||||
TUI Cruises GmbH joint venture | Hapag-Lloyd Cruises [Member] | ||||||||
Other Assets | ||||||||
Purchase price | € | € 75.0 | |||||||
TUI Cruises GmbH joint venture | Luxury Liners [Member] | Hapag-Lloyd Cruises [Member] | ||||||||
Other Assets | ||||||||
Number of cruise ships acquired | ship | 2 | |||||||
TUI Cruises GmbH joint venture | Expedition Ships [Member] | Hapag-Lloyd Cruises [Member] | ||||||||
Other Assets | ||||||||
Number of cruise ships acquired | ship | 3 |
Leases - Schedule of Lease Expense (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Lease, Cost [Abstract] | ||
Amortization of right-of-use-assets | $ 4,881 | $ 3,195 |
Interest on lease liabilities | 1,933 | 596 |
Total lease costs | 33,928 | 35,457 |
Commission, transportation and other | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 14,745 | 19,056 |
Other operating expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 7,001 | 6,931 |
Marketing, selling and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 5,368 | $ 5,679 |
Restructuring Charges - Narrative (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | |
---|---|---|---|---|
Apr. 30, 2020 |
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 5,547,000 | $ 0 | $ 12,000,000.0 | |
Expected additional costs | $ 5,556,000 | |||
Subsequent Event | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Percentage of workforce that was reduced or furloughed | 23.00% | |||
Severance costs | $ 26,900,000 |
Changes in Accumulated Other Comprehensive (Loss) Income - Changes in AOCI by Component (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | $ 12,163,846 | $ 11,105,461 |
Ending balance | 10,231,775 | 11,269,070 |
Changes related to cash flow derivative hedges | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (688,529) | (537,216) |
Other comprehensive income (loss) before reclassifications | (322,985) | 61,565 |
Amounts reclassified from accumulated other comprehensive loss | 22,380 | (12,722) |
Net current-period other comprehensive income (loss) | (300,605) | 48,843 |
Ending balance | (989,134) | (488,373) |
Changes in defined benefit plans | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (45,558) | (26,023) |
Other comprehensive income (loss) before reclassifications | (8,094) | (841) |
Amounts reclassified from accumulated other comprehensive loss | 505 | 188 |
Net current-period other comprehensive income (loss) | (7,589) | (653) |
Ending balance | (53,147) | (26,676) |
Foreign currency translation adjustments | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (63,626) | (64,495) |
Other comprehensive income (loss) before reclassifications | 10,290 | 564 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 |
Net current-period other comprehensive income (loss) | 10,290 | 564 |
Ending balance | (53,336) | (63,931) |
Accumulated other comprehensive loss | ||
Changes in accumulated other comprehensive loss by component | ||
Beginning balance | (797,713) | (627,734) |
Other comprehensive income (loss) before reclassifications | (320,789) | 61,288 |
Amounts reclassified from accumulated other comprehensive loss | 22,885 | (12,534) |
Net current-period other comprehensive income (loss) | (297,904) | 48,754 |
Ending balance | $ (1,095,617) | $ (578,980) |
Leases - Schedule of Lease Terms and Discount Rates (Details) |
Mar. 31, 2020 |
---|---|
Weighted average of the remaining lease term | |
Operating leases | 8 years 7 months 6 days |
Finance leases | 30 years 2 months 1 day |
Weighted average discount rate | |
Operating leases | 4.70% |
Finance leases | 4.50% |
Redeemable Noncontrolling Interest - Schedule of Redeemable Noncontrolling Interest (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
Dec. 31, 2019 |
|
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | |||
Beginning balance | $ 569,981 | $ 542,020 | $ 542,020 |
Net income attributable to noncontrolling interest, including the contractual accretion of the put options | 7,444 | $ 7,125 | 28,713 |
Distribution to noncontrolling interest | (752) | ||
Ending balance | $ 577,425 | $ 569,981 |
Impairment and Credit Losses - Schedule of Goodwill (Details) $ in Thousands |
3 Months Ended |
---|---|
Mar. 31, 2020
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at December 31, 2019 | $ 1,385,644 |
Impairment charge | (576,208) |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 |
Foreign currency translation adjustment | (220) |
Balance at March 31, 2020 | 809,216 |
Royal Caribbean International | |
Goodwill [Roll Forward] | |
Balance at December 31, 2019 | 299,226 |
Impairment charge | 0 |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | (2,694) |
Foreign currency translation adjustment | (220) |
Balance at March 31, 2020 | 296,312 |
Celebrity Cruises | |
Goodwill [Roll Forward] | |
Balance at December 31, 2019 | 1,632 |
Impairment charge | 0 |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 2,694 |
Foreign currency translation adjustment | 0 |
Balance at March 31, 2020 | 4,326 |
Silversea Cruises | |
Goodwill [Roll Forward] | |
Balance at December 31, 2019 | 1,084,786 |
Impairment charge | (576,208) |
Transfer of goodwill attributable to the 2019 purchase of photo operations onboard our ships | 0 |
Foreign currency translation adjustment | 0 |
Balance at March 31, 2020 | $ 508,578 |
Changes in Accumulated Other Comprehensive (Loss) Income (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Changes In Accumulated Other Comprehensive Income (Loss) by Component | The following table presents the changes in accumulated other comprehensive income (loss) by component for the quarters ended March 31, 2020 and 2019 (in thousands):
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Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Loss) | The following table presents reclassifications out of accumulated other comprehensive income (loss) for the quarters ended March 31, 2020 and 2019 (in thousands):
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Revenues - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
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Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | $ 2,032,750 | $ 2,439,767 | ||||||||||||
Cruise Itinerary | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | 1,864,554 | 2,341,620 | ||||||||||||
Cruise Itinerary | North America | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | [1] | 1,324,573 | 1,681,058 | |||||||||||
Cruise Itinerary | Asia Pacific | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | [2] | 362,398 | 490,075 | |||||||||||
Cruise Itinerary | Europe | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | [3] | 19,540 | 7,982 | |||||||||||
Cruise Itinerary | Other regions | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | [4] | 158,043 | 162,505 | |||||||||||
Other Revenues | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Total revenues | [5] | $ 168,196 | $ 98,147 | |||||||||||
Passenger Ticket | Other regions | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Percentage of revenues by country | [6] | 23.00% | 26.00% | |||||||||||
Passenger Ticket | United States | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Percentage of revenues by country | 68.00% | 66.00% | ||||||||||||
Passenger Ticket | Australia | ||||||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||||||
Percentage of revenues by country | 9.00% | 8.00% | ||||||||||||
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(Loss) Earnings Per Share |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) Earnings Per Share | (Loss) Earnings Per Share A reconciliation between basic and diluted (loss) earnings per share is as follows (in thousands, except per share data):
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Redeemable Noncontrolling Interest |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||
Noncontrolling Interest [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
Redeemable Noncontrolling Interest | Redeemable Noncontrolling Interest In connection with the acquisition of Silversea Cruises, we recorded redeemable noncontrolling interest due to the put options held by the non-controlling interest shareholder, which may require us to purchase the remaining interest, or 33.3% of Silversea Cruises, upon the occurrence or nonoccurrence of certain future events that are not solely within our control. At the acquisition date, the estimated fair value of the redeemable noncontrolling interest was based on 33.3% of Silversea Cruises' equity value, which was determined based on the transaction price paid for 66.7% of Silversea Cruises. As of March 31, 2020, the non-controlling controlling interest shareholder's interest is presented as Redeemable noncontrolling interest and is classified outside of shareholders' equity in our consolidated balance sheets. Additionally, the noncontrolling interest's share in the net earnings (loss) and contractual accretion requirements associated with the put options are included in Net Income attributable to noncontrolling interest in our consolidated statements of comprehensive income (loss). The following table presents changes in the redeemable noncontrolling interest as of March 31, 2020 (in thousands):
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General |
3 Months Ended |
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Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General Description of Business We are a global cruise company. As of March 31, 2020, we control and operate four global cruise brands: Royal Caribbean International, Celebrity Cruises, Azamara Club Cruises and Silversea Cruises (collectively, our "Global Brands"). We also own a 50% joint venture interest in the German brand TUI Cruises and a 49% interest in the Spanish brand Pullmantur (collectively, our "Partner Brands"). We account for our investments in our Partner Brands under the equity method of accounting. Management's Plan and Liquidity As part of the global containment effort for the COVID-19 pandemic, the Company implemented a voluntary suspension of its global cruise operations effective March 13, 2020, which has subsequently been extended through at least July 31, 2020 and China sailings until at least June 30, 2020. On March 14, 2020, concurrent with our and the broader cruise industry’s suspension, the U.S. Centers for Disease Control and Prevention (“CDC”) issued a No Sail Order through April 13, 2020. On April 9, 2020, the CDC modified its existing No Sail Order to extend it until the earliest of (a) the expiration of the Secretary of Health and Human Services’ declaration that COVID-19 constitutes a public health emergency, (b) the date the Director of the CDC rescinds or modifies the No Sail Order or (c) 100 days after the order appears on the Federal Register, which would be July 24, 2020. Significant events affecting travel, including COVID-19, typically have an impact on the booking pattern for cruise vacations, with the full extent of the impact generally determined by the length of time the event influences travel decisions. Based on our assumptions and estimates and our financial condition, we believe that the liquidity described in the following paragraphs will be sufficient to fund our liquidity requirements for at least the next twelve months. However, there can be no assurance that our assumptions and estimates are accurate due to possible unknown variables, including, but not limited to, whether the CDC will issue additional No Sail Orders on cruises out of the United States. The No Sail Order is currently set to expire on or before July 24, 2020. The Company, working with the CDC, is developing its enhanced safety and health protocols as well as other operational procedures necessary to return its vessels to service and is targeting mid-summer of 2020 to begin sailings; however, if the ban on cruising is extended beyond the third quarter of 2020, it will have a material adverse impact on our current and forecasted liquidity levels. There are also other unknown variables related to the unprecedented suspension of our operations and, as such, there is significant uncertainty in our ability to predict future liquidity requirements. As of March 31, 2020, the Company had liquidity of $3.6 billion, consisting of cash and cash equivalents, net of our outstanding commercial paper notes. During the quarter ended March 31, 2020 and through the issuance of these financial statements, as described in Note 7. Debt, the Company: •increased the capacity under our revolving credit facilities by $0.6 billion and fully drew on both facilities; •entered into 364-day senior secured term loan for $2.2 billion, which was subsequently increased to $2.35 billion and was repaid in its entirety through the date of these financial statements; and •secured deferrals of existing debt amortization under our export-credit backed ship debt facilities which increased the Company’s liquidity by an additional $0.8 billion. The Company has also undertaken several proactive measures as well as has future plans to mitigate the financial and operational impacts of COVID-19, through new financing options, reduction of capital expenditures and operating expenses, including furloughing staff, laying up vessels, as well as agreeing with certain of our lenders not to pay dividends or engage in stock repurchases. We were in compliance with all of our debt covenants as of March 31, 2020 and the date these financial statements were issued. Subsequent to March 31, 2020, we amended each of our outstanding facilities to waive compliance with all financial covenants in such facilities through and including the first quarter of 2021. We also have agreements with a number of credit card processors that transact advance passenger ticket deposits and onboard transactions related to our cruise voyages. These agreements allow the credit card processors to require under certain circumstances, including the existence of a material adverse change, excessive chargebacks and other triggering events, that we maintain a reserve which could be satisfied by posting collateral. While we have not posted any collateral under these agreements as of the date of the issuance of the financial statements, we are currently in discussions with certain processors which may result in the posting of collateral to satisfy reserve requirements. Based on the triggers in the various agreements and the conversations to date, we believe the maximum reserve we may need to provide under these agreements in the next twelve months is approximately $300 million. Any covenant waiver may lead to increased costs, increased interest rates, additional restrictive covenants and other available lender protections that would be applicable. There can be no assurance that we would be able to obtain waivers in a timely manner, or on acceptable terms at all. If we were not able to obtain waivers or repay the debt facilities, this would lead to an event of default and potential acceleration of amounts due under all of our outstanding debt and derivative contract payables.
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CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 237,168,148 | 236,547,842 |
Treasury stock, common shares (in shares) | 27,799,775 | 27,746,848 |
Summary of Significant Accounting Policies (Policies) |
3 Months Ended |
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Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Adoption of Accounting Pronouncements; Recent Accounting Pronouncements | Adoption of Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326); Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs issued to clarify certain of its provisions, introduces new guidance which makes substantive changes to the accounting model for financial assets subject to credit losses that are measured at amortized cost, as well as certain off-balance sheet credit exposures. The updates include the introduction of a new current expected credit loss (“CECL”) model that is based on expected rather than incurred losses. On January 1, 2020, we adopted these updates using the modified retrospective approach. The adoption did not have a material impact to our consolidated financial statements. Recent Accounting Pronouncements In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. We are currently evaluating the impact of the new guidance on our consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848), which provides optional expedients and exceptions to the current guidance on contract modifications and hedging relationships to ease the financial reporting burdens of the expected market transition from LIBOR and other interbank offered rates to alternative reference rates. The guidance was effective upon issuance and may be applied prospectively to contract modifications made and hedging relationships entered into or evaluated on or before December 31, 2022. We are currently evaluating the impact of the new guidance on our consolidated financial statements.
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Other Assets (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Assets [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Other Nonoperating Income (Expense) | The following tables set forth information regarding our investments accounted for under the equity method of accounting, including the entities discussed above (in thousands):
(1)There were no dividends received from TUI Cruises for the quarter ended March 31, 2020. For the quarter ended March 31, 2019, amount includes dividends of €50.0 million from TUI Cruises, net of tax withholdings.
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Schedule of Related Party Transactions |
(1)Included within Trade and other receivables, net in our consolidated balance sheets. (2)Included within Other assets in our consolidated balance sheets. We recorded the following as it relates to these services in our operating results within our consolidated statements of comprehensive income (loss) (in thousands):
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Debt - Schedule of Maturities (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
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Debt Disclosure [Abstract] | |
Remainder of 2020 | $ 1,082,153 |
2021 | 3,102,445 |
2022 | 4,289,601 |
2023 | 823,209 |
2024 | 2,706,216 |
Thereafter | 4,025,248 |
Total | $ 16,028,872 |
Other Assets - Notes Receivable Due From Equity Instruments (Details) - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||||||
Total notes receivable due from equity investments | $ 167,352 | $ 193,351 | ||||
Less-current portion | [1] | 27,323 | 19,681 | |||
Long-term portion | [2] | $ 140,029 | $ 173,670 | |||
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Fair Value Measurements and Derivative Instruments - Estimated Fair Value (Details) - Nonrecurring - USD ($) $ in Thousands |
Mar. 31, 2020 |
Dec. 31, 2019 |
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Level 1 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[2] | $ 3,890,811 | $ 243,738 | |||||||||
Total Assets | [2] | 3,890,811 | 243,738 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [2],[3] | 0 | 0 | |||||||||
Total Liabilities | [2] | 0 | 0 | |||||||||
Level 2 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[4] | 0 | 0 | |||||||||
Total Assets | [4] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3],[4] | 15,635,346 | 10,059,055 | |||||||||
Total Liabilities | [4] | 15,635,346 | 10,059,055 | |||||||||
Level 3 | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1],[5] | 0 | 0 | |||||||||
Total Assets | [5] | 0 | 0 | |||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3],[5] | 0 | 0 | |||||||||
Total Liabilities | [5] | 0 | 0 | |||||||||
Total Carrying Amount | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1] | 3,890,811 | 243,738 | |||||||||
Total Assets | 3,890,811 | 243,738 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 15,458,844 | 9,370,438 | |||||||||
Total Liabilities | 15,458,844 | 9,370,438 | ||||||||||
Total Fair Value | ||||||||||||
Assets: | ||||||||||||
Cash and cash equivalents | [1] | 3,890,811 | 243,738 | |||||||||
Total Assets | 3,890,811 | 243,738 | ||||||||||
Liabilities: | ||||||||||||
Long-term debt (including current portion of long-term debt) | [3] | 15,635,346 | 10,059,055 | |||||||||
Total Liabilities | $ 15,635,346 | $ 10,059,055 | ||||||||||
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Fair Value Measurements and Derivative Instruments - Derivative Instruments, Interest Rate Risk, Foreign Currency Exchange Rate Risk (Narrative) (Details) $ in Thousands, € in Millions, T in Millions |
3 Months Ended | 12 Months Ended | |||||
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Mar. 31, 2020
EUR (€)
T
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Mar. 31, 2020
USD ($)
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Mar. 31, 2019
USD ($)
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Dec. 31, 2019
EUR (€)
|
Dec. 31, 2019
USD ($)
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Sep. 23, 2020
USD ($)
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Mar. 31, 2020
USD ($)
T
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Gains and losses from derivatives involved in hedging relationships | |||||||
Derivative instrument, credit risk exposure | $ 19,200 | ||||||
Maximum length of time hedged in derivative contract | 3 years | 3 years | |||||
Percentage of debt bearing fixed interest | 47.00% | 62.10% | 47.00% | ||||
Scenario, Forecast | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Debt instrument, collateral amount | $ 80,400 | ||||||
Interest rate swaps | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | $ 3,500,000 | $ 3,700,000 | |||||
Forward Contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Change in fair value of foreign currency forward contracts recognized in earnings | $ (52,700) | $ 5,000 | |||||
Forward Contracts | Not Designated | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | 549,800 | ||||||
Foreign exchange contracts | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | $ 2,900,000 | $ 3,700,000 | |||||
Fuel swaps | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Discontinued cash flow hedge, nonmonetary amount | T | 0.2 | 0.2 | |||||
Fuel swaps | Other income (expense) | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Discontinued cash flow hedge, reclassification loss | 54,900 | ||||||
Cruise ships on order | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Aggregate cost of ships on order, not including partner brands on order | 13,800,000 | ||||||
Amount deposited for cost of ships on order | $ 810,900 | ||||||
Percentage of aggregate cost exposed to fluctuations in the euro exchange rate | 63.60% | 65.90% | 63.60% | ||||
TUI Cruises | Forward Contracts | Designated as Hedging Instrument | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Notional amount | € 245.0 | $ 268,800 | |||||
Foreign currency debt | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | 313,799 | $ 358,078 | |||||
Foreign currency debt | TUI Cruises | |||||||
Gains and losses from derivatives involved in hedging relationships | |||||||
Carrying value of non-derivative instrument designated as hedging instrument | € 286.0 | $ 313,800 | € 319.0 | $ 358,100 |
Fair Value Measurements and Derivative Instruments - Income Statement Hedging Instruments (Details) - USD ($) $ in Thousands |
3 Months Ended | |
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Mar. 31, 2020 |
Mar. 31, 2019 |
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Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Fuel | $ 194,268 | $ 160,171 |
Depreciation and amortization | 324,330 | 292,285 |
Interest Income (Expense) | (87,377) | (90,631) |
Other Nonoperating Income (Expense) | (32,859) | (5,088) |
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (22,380) | 12,722 |
Interest Contracts | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (3,391) | (391) |
Fuel swaps | Fuel | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (14,233) | 18,018 |
Fuel swaps | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | 344 | (256) |
Foreign exchange contracts | Depreciation and amortization expenses | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (3,337) | (3,334) |
Foreign exchange contracts | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (1,763) | (1,315) |
Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Income (Loss) into Income | (3,391) | (391) |
Fair Value Hedging | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | (21,330) | (8,459) |
Amount of Gain (Loss) Recognized in Income on Derivative | 20,430 | 5,835 |
Fair Value Hedging | Interest Contracts | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | (21,330) | (8,459) |
Amount of Gain (Loss) Recognized in Income on Derivative | 20,430 | (2,257) |
Fair Value Hedging | Interest Contracts | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative | 0 | 8,092 |
Fair Value Hedging | Interest rate swaps | Interest expense, net of interest capitalized | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | (21,330) | (8,459) |
Amount of Gain (Loss) Recognized in Income on Derivative | 20,430 | (2,257) |
Fair Value Hedging | Interest rate swaps | Other income (expense) | ||
Effect of derivative instruments involved in hedging on the consolidated financial statements | ||
Amount of Gain (Loss) Recognized in Income on Hedged Item | 0 | 0 |
Amount of Gain (Loss) Recognized in Income on Derivative | $ 0 | $ 8,092 |
Leases - Schedule of Lease Maturities (Details) $ in Thousands |
Mar. 31, 2020
USD ($)
|
---|---|
Operating Leases | |
Remainder of 2020 | $ 97,082 |
2021 | 117,145 |
2022 | 106,714 |
2023 | 101,557 |
2024 | 75,509 |
Thereafter | 417,122 |
Total lease payments | 915,129 |
Less: Interest | (232,267) |
Present value of lease liabilities | 682,862 |
Finance Leases | |
Remainder of 2020 | 37,905 |
2021 | 46,451 |
2022 | 23,480 |
2023 | 12,539 |
2024 | 12,528 |
Thereafter | 406,088 |
Total lease payments | 538,991 |
Less: Interest | (312,520) |
Present value of lease liabilities | $ 226,471 |
Commitment and Contingencies - Capital Commitments (Details) - berth |
Mar. 31, 2020 |
Sep. 30, 2019 |
---|---|---|
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 52,400 | |
Royal Caribbean International | Wonder of the Seas | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,700 | |
Royal Caribbean International | Oasis Class Ship | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,700 | |
Royal Caribbean International | Odyssey of the Seas | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,200 | |
Royal Caribbean International | Icon Class, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Royal Caribbean International | Icon Class, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Royal Caribbean International | Icon Class, Unnamed Ship Three | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 5,600 | |
Celebrity Cruises | Celebrity Beyond | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 3,250 | |
Celebrity Cruises | Edge Class, Unnamed | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 3,250 | |
Silversea Cruises | Silver Origin | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 100 | |
Silversea Cruises | Silver Moon | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 550 | |
Silversea Cruises | Silver Dawn | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 550 | |
Silversea Cruises | Evolution Class, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 600 | 600 |
Silversea Cruises | Evolution Class, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 600 | 600 |
TUI Cruises | Mein Schiff 7 | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 2,900 | |
TUI Cruises | TUI Cruises, Unnamed Ship One | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,100 | |
TUI Cruises | TUI Cruises, Unnamed Ship Two | ||
Long-term Purchase Commitment [Line Items] | ||
Ship passenger capacity berths | 4,100 |
Fair Value Measurements and Derivative Instruments - Non-Derivative Net Investment (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Mar. 31, 2020 |
Mar. 31, 2019 |
|
Foreign currency debt | ||
Net investment hedge | ||
Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) | $ 7,489 | $ 5,702 |
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