Royal Caribbean Cruises has amended its $1.55 billion unsecured revolving credit facility due 2022 with Nordea Bank ABP, New York Branch, as administrative agent, its $1.925 billion unsecured revolving credit facility due 2024 with The Bank of Nova Scotia, as administrative agent and its $1.0 billion unsecured three-year term loan agreement with Bank of America, N.A., as administrative agent.

These amendments waive the quarterly-tested fixed charge coverage and net debt to capitalization covenants in each Credit Facility through and including the first quarter of 2021 and impose a new monthly-tested liquidity covenant for the duration of the waiver period. 

The company also said it amended the export-credit backed loan facility incurred to finance Ovation of the Seas, in order to incorporate the benefits of a 12-month debt holiday initiative being offered by Euler Hermes Aktiengesellschaft, the official export credit agency of Germany, to the cruise industry. 

It also amended its export-credit backed loan facility incurred to finance the Harmony of the Seas in order to incorporate the benefits of a 12-month debt holiday initiative being offered by BpiFrance Assurance Export, the official export credit agency of France, to the cruise industry.

Finally, Royal Caribbean said it will file its 2020 first quarter earnings report by the end of May, citing challenges due to COVID-19, and a provision allowed by the SEC.

“The company will be relying on the order to delay the filing of its Quarterly Report on Form 10-Q for the quarter ended March 31, 2020, due May 11, 2020, by up to 45 days due to circumstances related to the COVID-19 pandemic. COVID-19 has resulted in unprecedented operational challenges for the cruise industry generally, as well as the company, leading to substantial disruptions to the Company’s business and operations. In particular, the COVID-19 pandemic has resulted in the company announcing a voluntary suspension of its global cruise operations from March 13 through June 11, 2020, interfering with the company’s normal operations,” said a press release.

“In addition, voluntary and mandatory measures implemented by the company to reduce the spread of the virus have limited access to many of the areas where the company operates, including its corporate offices and facilities, resulting in limited support from staff. These restrictions have, in turn, impacted the Company’s ability to complete its internal quarterly review, including an evaluation of the various impacts of COVID-19 on the company’s financial statements and to prepare and complete the Form 10-Q in a timely manner.”