ICBC provides a $130 million USD loan to Royal Caribbean Cruises to finance its purchase of a cruise ship

Project narrative

On February 2, 2018, the New York Branch of the Industrial and Commercial Bank of China (ICBC) entered into a $130,000,000 USD term loan agreement with Royal Caribbean Cruises Ltd. — a Liberia-incorporated global cruise holding company and cruiser line operator based in Miami, Florida and listed on the New York Stock Exchange — to finance its purchase of a cruise ship. This loan carried a maturity period of five years, a final maturity date of February 2, 2023, and a variable interest rate of LIBOR plus a margin from 1.070% to 1.570%, depending on the borrower's senior debt ratings. ICBC NY Branch served as the administrative agent. On June 26, 2020, RCI Holdings LLC — a Liberia-incorporated wholly-owned subsidiary of Royal Caribbean Cruises — issued a second priority guarantee to ICBC for the $130 million USD loan. The proceeds were to be used by the borrower to finance its purchase of a cruise ship. In late September 2017, Royal Caribbean Cruises Ltd.'s upmarket cruise brand Azamara Club Cruises entered into an agreement to purchase the mid-sized cruise ship 'Adonia' from Carnival Corporation & plc. The ship was to be renamed the 'Azamara Pursuit' with a capacity of 686 guests each. The ship was the last of eight "R" class ships originally built for Renaissance Cruises and been operating under P&O Cruises when it was sold. The ship was to be delivered in March 2018 and would undergo décor updates to make it similar to its two sister "R" class ships in Azamara's fleet. The ship was officially transferred to Azamara on March 14, 2018 and was to begin its inaugural cruise under Azamara in August 2018. As of March 31, 2020, the outstanding balance of the loan was $130,000,000 USD. On March 19, 2021, Royal Caribbean sold Azamara Cruises, including 'Azamara Pursuit', to Sycamore Partners for $201 million USD.