Royal Caribbean Cruise Lines 2006 Annual Report Download - page 35

NOTE 6. LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
2006 2005
Unsecured revolving credit facility,
LIBOR plus 0.875% and a
commitment fee of 0.175%
due 2010 $ 445,000 $ 135,000
Unsecured senior notes and
senior debentures,
6.75% to 8.75%,
due 2007 through 2016,
2018 and 2027 2,804,608 2,096,286
Liquid Yield Option™ Notes
with yield to maturity
of 4.875%, due 2021 –531,857
Zero coupon convertible notes
with yield to maturity
of 4.75%, due 2021 –137,942
¤750 million unsecured Bridge Loan,
EURIBOR plus 0.625%, due 2007 925,110 –
$570 million unsecured term loan,
3.77% due 2006 through 2013 529,286 –
$360 million unsecured term loan,
LIBOR plus 1.0%, due 2006 –270,000
$300 million unsecured term loan,
LIBOR plus 0.8%, due 2009
through 2010 200,000 200,000
$225 million unsecured term loan,
LIBOR plus 0.75%, due 2006
through 2012 192,848 225,000
¤6.0 million unsecured revolving
credit lines, EURIBOR plus
0.8% to 1.25% due 2007
through 2008 7,961 –
Unsecured term loans,
LIBOR plus 0.7%, due 2010 200,000 200,000
Unsecured term loan, 8.0%,
due through 2006 –11,811
Term loan, 8.0%, due through 2010,
secured by a certain Celebrity ship –172,979
Term loans, LIBOR plus 0.85%,
due through 2008, secured by
certain Celebrity ships 61,149 125,580
Capital lease obligations 47,782 48,320
5,413,744 4,154,775
Less – current portion (373,422) (600,883)
Long-term portion $ 5,040,322 $3,553,892
During 2006, we entered into and drew in full a $570.0 million
unsecured term loan due through 2013 at a rate of 3.77%.
During 2006, we issued $550.0 million of 7.0% senior unsecured
notes due 2013, at a price of 99.509% of par and $350.0 million of
7.25% senior unsecured notes due 2016, at a price of 99.690% of par.
During 2006, we paid $530.6 million to redeem in full the accret-
ed balance of our outstanding Liquid Yield Option Notes™
(“LYONs”) due February 2, 2021. During 2006, holders our LYONs
converted approximately $13.5 million of the accreted value of
these notes into approximately 319,000 shares of common stock
and cash for fractional shares.
During 2006, we prepaid a total of $153.8 million on an 8.0% term
loan secured by a certain Celebrity ship. We borrowed $150.0 million
on our unsecured revolving credit facility to prepay the term loan.
During 2006, we called for redemption all of our outstanding zero
coupon convertible notes due May 18, 2021. Most holders of the
notes elected to convert them into shares of our common stock, rather
than redeem them for cash, resulting in the issuance of approximate-
ly 4.1 million shares during the redemption period. In addition to the
4.1 million shares issued related to the redemption, holders of our
zero coupon convertible notes converted approximately $11.5 million
of the accreted balance of these notes into approximately 369,000
shares of common stock and cash for fractional shares.
During 2006, we obtained a ¤750.0 million, or approximately
$960.5 million, unsecured bridge loan, on which we drew ¤701.0
million, or approximately $925.1 million, to finance our acquisition
of Pullmantur. The bridge loan has an original maturity of 364 days.
We have classified the bridge loan as long-term debt at December
31, 2006 in accordance with the provisions of Statement of
Financial Accounting Standards (“SFAS”) No. 6, “Classification of
Short-Term Obligations Expected to be Refinanced”. We refinanced
the bridge loan subsequent to year-end with a portion of the net
proceeds from the ¤1.0 billion, or approximately $1.3 billion,
unsecured bond offering which occurred in January 2007. (See
Note 14.
Subsequent Events )
Under certain of our agreements, the contractual interest rate and
commitment fee vary with our debt rating.
The unsecured senior notes and senior debentures are not
redeemable prior to maturity.
ROYAL CARIBBEAN CRUISES LTD. 33
Notes to the Consolidated Financial Statements (Continued)