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RCL bolsters liquidity, plans further $1.7bn cuts to capex, operating costs

Royal Caribbean Cruises Ltd. increased its revolving credit capacity and is taking significant actions to reduce capital expenditures and operating costs in reaction to coronavirus.

Additional $550m revolving credit

The company increased its revolving credit capacity by $550m and is reducing capital expenditures and operating expenses and taking other actions to improve liquidity by at least a further $1.7bn in 2020. 

Plus 2021 reductions

Royal Caribbean is also planning reductions to its 2021 capital expenditures and operating expenses.

First quarter and full-year guidance withdrawn

The company had previously communicated that its 2020 guidance did not include the impact of the COVID-19 outbreak. Given the recent government actions and the heightened impact and uncertainty of changes in the magnitude, duration and geographic reach of the virus, RCL withdrew its first quarter and full-year 2020 guidance.

'These are extraordinary times and we are taking these steps to manage the company prudently and conservatively,' RCL Chairman and CEO Richard Fain said. 'I am proud of the work our teams are doing to address this unprecedented situation.'

See also 'NCLH secures extra $675m liquidity amid coronavirus uncertainty'

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