RCL is paying $1bn and assuming about $500m in debt for the Silversea deal.
Aggregate principal amount up to $700m
The loan agreement makes available to RCL on any single business day an aggregate principal amount not to exceed $700m in the form of term loans denominated in US dollars. The interest rate will range from a rate equal to LIBOR plus a margin of 0.9% to 1.5% per annum or a base rate plus a margin of 0% to 0.5% per annum, depending on RCL’s senior debt rating.
After a 60-day grace period, and until the commitments of the lenders have terminated, RCL will pay the lenders a ticking fee equal to a percentage ranging from 0.08% to 0.2% per annum, depending on the company's senior debt rating. The commitments of the lenders to make advances will terminate on the earlier of the date of funding and Nov.15, 2018. The obligations of the lenders to fund any borrowing became effective on July 2, and the advances will mature 364 days thereafter.
The loan agreement requires that RCL prepay the outstanding principal amount of any advances in the event the acquisition is not consummated within 10 business days after the date of funding and with 100% of the net cash proceeds of debt for borrowed money.
Joint lead arrangers and book runners
JPMorgan Chase Bank, NA; Citigroup Global Markets Ltd.; Goldman Sachs Bank USA; Merrill, Lynch, Pierce, Fenner & Smith Inc.; and Morgan Stanley Senior Funding Inc. are joint lead arrangers and joint book runners.
JPMorgan Chase Bank, NA is administrative agent and Bank of America, NA; Citigroup Global Markets Ltd., Goldman Sachs Bank USA and Morgan Stanley Senior Funding Inc. are co-syndication agents.