Royal Caribbean Cruise Lines 2012 Annual Report Download - page 84

80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
During 2012, we borrowed $290.0 million under an
unsecured term loan. All amounts borrowed under the
facility will be due and payable at maturity in February
2016. Interest on the loan accrues at a floating rate
based on LIBOR plus the applicable margin. The
applicable margin varies with our debt rating and
was 2.5% as of December 31, 2012. The proceeds of
this loan were used to reduce outstanding balances
on our revolving credit facilities.
During 2012, we repurchased €255.0 million or approx-
imately $328.0 million in aggregate principal amount
of our €1.0 billion 5.625% unsecured senior notes due
2014 through a debt tender offer conducted outside
of the United States. Total consideration paid in con-
nection with the tender offer, including premium and
related fees and expenses was $344.6 million. The
repurchase of the unsecured senior notes resulted in
a loss on the early extinguishment of debt of approxi-
mately $7.5 million which was recognized in earnings
immediately and is reported within extinguishment of
unsecured senior notes in our consolidated statements
of comprehensive income (loss).
During 2012, we took delivery of Celebrity Reflection.
To finance the purchase, we borrowed $673.5 million
under our previously committed unsecured term loan
which is 95% guaranteed by Hermes. The loan amor-
tizes semi-annually over 12 years and bears interest
at LIBOR plus a margin of 0.40%, currently approxi-
mately 1.03%. In addition during 2011, we entered into
forward-starting interest rate swap agreements which
effectively convert the floating rate available to us per
the credit agreement to a fixed rate (including appli-
cable margin) of 2.85% effective April 2013 through
the remaining term of the loan. See Note 13. Fair Value
Measurements and Derivative Instruments for further
information regarding these agreements.
In November 2012, we issued $650.0 million of 5.25%
unsecured senior notes due 2022 at par. The net pro-
ceeds from the offering were used to repay amounts
outstanding under our unsecured revolving credit
facilities. The issuance of these notes was part of
our refinancing strategy for our maturities in 2013
and 2014.
During 2012, we increased the capacity of our revolv-
ing credit facility due July 2016 by $233.0 million,
bringing our total capacity under this facility to $1.1
billion as of December 31, 2012. We have the ability to
increase the capacity of this facility by an additional
$67.0 million subject to the receipt of additional or
increased lender commitments. We also have a revolv-
ing credit facility due November 2014 with capacity
of $525.0 million as of December 31, 2012, giving us
aggregate revolving borrowing capacity of $1.6 billion.
Certain of our unsecured ship financing 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 arrangement, we pay to the applicable
export credit agency fees that range from either
(1) 0.88% to 1.48% per annum based on the outstand-
ing 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 each respective payment period. We
classify these fees within Debt issuance costs in our
consolidated statements of cash flows and within
Other Assets in our consolidated balance sheets.
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,
2012 for each of the next five years (in thousands):
Year
 
 
 
 
 
Thereafter 

NOTE 8. SHAREHOLDERS’ EQUITY
In December 2012, we declared and paid a cash divi-
dend on our common stock of $0.12 per share. During
the fourth quarter of 2012, we also paid a cash divi-
dend on our common stock of $0.12 per share which
was declared during the third quarter of 2012. We
declared and paid cash dividends on our common
stock of $0.10 per share during the first and second
quarters of 2012. During the first quarter of 2012, we
also paid a cash dividend on our common stock of
$0.10 per share which was declared during the fourth
quarter of 2011.