Royal Caribbean Cruise Lines 2011 Annual Report Download - page 50

2011 ANNUAL REPORT 46
PART II
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to build two ships of a new generation of Royal
Caribbean International cruise ships, known as
“Project Sunshine.” The ships will each have a
capacity of approximately 4,100 berths and are
expected to enter service in the third quarter of 2014
and in the second quarter of 2015, respectively. To
finance the ships, we entered into credit agreements
for each ship which make available to us 12-year
unsecured amortizing term loans in an amount up
to the United States dollar equivalent corresponding
to approximately €595.0 million, which are 95%
guaranteed by Hermes.
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Seas advised us that it will not exercise its right to
cancel the lease in 2012 and we subsequently made
a determination that we will not exercise our right to
cancel the lease. Thus, the lease will continue until at
least 2020 when both parties again have the right to
cancel the lease. Refer to our lease discussion under
the heading Off-Balance Sheet Arrangements below
and Note 14. Commitments and Contingencies to
our consolidated financial statements under Item 8.
Financial Statements and Supplementary Data for
further information.
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dividend which had been discontinued in the fourth
quarter of 2008. We declared and paid a cash
dividend on our common stock of $0.10 per share
during the third quarter of 2011 and declared a cash
dividend on our common stock of $0.10 per share in
December 2011, which was paid in the first quarter
of 2012.
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in connection with our financings of the Oasis of the
Seas and Allure of the Seas to reduce certain of the
interest rate costs. See Note 7. Long-Term Debt to
our consolidated financial statements under Item 8.
Financial Statements and Supplementary Data for
further information.
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Finland to build its first newbuild ship, scheduled
for delivery in the second quarter of 2014. TUI
Cruises has entered into a credit agreement provid-
ing financing for up to 80% of the contract price of
the ship. TUI Cruises has an option to construct a
second ship of the same class, which will expire on
October 31, 2012.
Other Items:
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bareboat charter our ship Ocean Dream to an unre-
lated party for a period of six years from the transfer
date. The charter agreement provides a renewal
option exercisable by the unrelated party for an
additional four years. We anticipate delivery of
Ocean Dream will take place in April 2012.
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connection with our purchase of Celebrity Solstice
was assigned from Celebrity Solstice Inc., our sub-
sidiary which owns the ship, to Royal Caribbean
Cruises Ltd. Similar assignments were simultaneously
made from the ship-owning subsidiary level to Royal
Caribbean Cruises Ltd. for the facilities relating to
Celebrity Equinox, Celebrity Eclipse and Celebrity
Silhouette and for the credit agreement relating to
Celebrity Reflection, expected to be delivered in
the fourth quarter of 2012. Other than the change
in borrower, the economic terms of these facilities
remain unchanged. These amended facilities each
contain covenants substantially similar to the cove-
nants, in our other parent-level ship financing agree-
ments and our revolving credit facilities.
We reported historical total revenues, operating income,
net income and earnings per share as shown in the
following table (in thousands, except per share data):
Year Ended
December 31,   
Total revenues      
Operating income      
Net income      
Basic earnings
per share:
Net income      
Diluted earnings
per share:
Net income      