Royal Caribbean Cruise Lines 2011 Annual Report Download - page 85

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ROYAL CARIBBEAN CRUISES LTD. 81
of our second Project Sunshine ship. The credit agree-
ments make available to us for each ship an unsecured
term loan in an amount up to the United States dollar
equivalent corresponding to approximately €595.0
million, with funding of 50% of each facility subject
to syndication prior to delivery. Hermes has agreed
to guarantee to the lender payment of 95% of each
financing. The loans amortize semi-annually and will
mature 12 years following delivery of the applicable
ship. Interest on the loans will accrue at our election
at either a fixed rate of 4.76% or a floating rate at
LIBOR plus a margin of 1.30%.
During 2008, we entered into a credit agreement
providing financing for Celebrity Reflection which is
scheduled for delivery in the fourth quarter of 2012.
The credit agreement provides for an unsecured term
loan for up to 80% of the purchase price of the vessel
which will be 95% guaranteed by Hermes and will be
funded at delivery. The loan will have a 12-year life
with semi-annual amortization, and will bear interest
at our election of either a fixed rate of 4.13% (inclusive
of the applicable margin) or a floating rate at LIBOR
plus a margin of 0.40%.
In February 2012, the credit facility we obtained in
connection with our purchase of Celebrity Solstice
was assigned from Celebrity Solstice Inc., our subsid-
iary 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 bor-
rower, the economic terms of these facilities remain
unchanged. These amended facilities each contain
covenants substantially similar to the covenants, in
our other parent-level ship financing agreements
and our revolving credit facilities.
Certain of our unsecured term loans are guaranteed
by the export credit agency in the respective country
in which the ship is constructed. In consideration for
these guarantees, depending on the financing arrange-
ment, we pay to the applicable export credit agency
fees that range from either (1) 1.13% to 1.96% per annum
based on the outstanding loan balance semi-annually
over the term of the loan (subject to adjustment in
certain of our facilities based upon our credit ratings)
or (2) an upfront fee of approximately 2.3% to 2.37%
of the maximum loan amount. We amortize the fees
that are paid upfront over the life of the loan and those
that are paid semi-annually over the life of the loan
over each respective payment period. We classify
these fees within Debt issuance costs in our consoli-
dated statement of cash flows. During the second
quarter of 2011, we identified errors in the manner
in which we were amortizing fees related to three
outstanding export credit agency guaranteed loans,
and to a much lesser extent, fees associated with
our revolving credit facilities. See Note 1. General—
Revision of Prior Period Financial Statements for
further details.
Under certain of our agreements, the contractual
interest rate, facility fee and/or export credit agency
fee vary with our debt rating.
The unsecured senior notes and senior debentures are
not redeemable prior to maturity, except that certain
series may be redeemed upon the payment of a
make-whole premium.
Following is a schedule of annual maturities on long-
term debt including capital leases as of December 31,
2011 for each of the next five years (in thousands):
Year
 
 
 
 
 
Thereafter 

NOTE 8. SHAREHOLDERS’ EQUITY
In July 2011, our Board of Directors reinstated our
quarterly dividend which had previously been dis-
continued 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.
NOTE 9. STOCK-BASED EMPLOYEE
COMPENSATION
We have three stock-based compensation plans, which
provide for awards to our officers, directors and key
employees. The plans consist of a 1995 Incentive
Stock Option Plan, a 2000 Stock Award Plan, and a
2008 Equity Plan. The 1995 Incentive Stock Option
Plan terminated by its terms in February 2005. The
2000 Stock Award Plan, as amended, and the 2008
Equity Plan, as amended, provide for the issuance
of up to 13,000,000 and 11,000,000 shares of our
common stock, respectively, pursuant to grants of