Royal Caribbean Is Thrown a Life Preserver Worth $700 Million

John

I'm on Island Time
Staff member
Royal Caribbean Cruises (NYSE:RCL) announced today that it was given a new $700 million term loan from Morgan Stanley (NYSE:MS) that will help keep it afloat until it is able to head back out to sea.

The cruise ship operator has paused all cruises from most ports until November. With little money coming in and considerable expenses still to pay, Royal Caribbean has been burning through between $250 million and $290 million a month.

Yet with $4.1 billion in liquidity as of the end of June, after borrowing another $2 billion, and having debt maturities of just $300 million this year (but $1.3 billion in 2021) the cruise line still looks seaworthy.

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