Royal Caribbean Cruises Ltd. was able to secure an additional $220-million in liquidity from a European lender to help the company through trying times.
According to a Securities and Exchange Commission filing on Monday afternoon, payments on Celebrity Edge, Celebrity Apex, and Symphony of the Seas have been deferred until April 2021.
Like Germany, French lender, BpiFrance Assurance Export, is also allowing troubled cruise companies to exercise a debt holiday or loan deferrals to get through a time when no revenue is coming in. All three cruise ships were built in France, allowing them to take advantage of the offer.
A report on CNBC’s Closing Bell in April showed Royal Caribbean’s monthly operating expenses at an estimated $400 million per month.
Royal Caribbean has been trying to reduce monthly operating costs to weather the financial storm. Most recently the company laid off 25 percent of its workforce throughout all its brands and is postponing ship revitalizations.
At the request of Royal Caribbean, construction on the new cruise terminal in Galveston, Texas has also been postponed until 2021.
The debt relief is on top of the $250 million that Royal Caribbean received from German creditors in April where they deferred payments on Celebrity Silhouette, Celebrity Solstice, Celebrity Eclipse, Celebrity Equinox, and Quantum of the Seas.
Norwegian Cruise Line Holdings announced they were also taking advantage of debt holiday from Germany’s leading credit agency. The cruise line was able to defer payments on three of their ships: Pride of America, Norwegian Epic, and Norwegian Jewel, adding $910 million dollars in liquidity.
On Tuesday morning, Royal Caribbean stock opened at $41.63 per share, closing at $41.37 on Monday.
- Florida Governor: ‘We Want to See Cruise Ships Sail Again’
- Princess Delays Restart of Down Under Cruises Until May 2021
- Virgin Voyages Cancels Remaining 2020 Sailings
- Why Are Cruises To Nowhere Illegal in the USA?
- Carnival Begins Restaffing Ships in Hope of December Return
- CDC Issues Updated Cruise Warning as No-Sail Set To Expire
- What To Know Before Buying This $25,000 Cruise Ship Condo
- Maritime Law: The One Change That Could Save The Cruise Industry
- Timeline: 2020 Cruise Industry Shutdown
- Travel During A Pandemic: Disney Springs Hotel Stay
EDITORIAL4 days ago
The Controversial Technology That Could Change Cruising Forever
CRUISE NEWS4 days ago
Timeline: 2020 Cruise Industry Shutdown
CRUISE NEWS3 days ago
CDC Issues Updated Cruise Warning as No-Sail Set To Expire
CRUISE NEWS2 days ago
Carnival Begins Restaffing Ships in Hope of December Return