Royal Caribbean Cruise Lines 2007 Annual Report Download - page 35

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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS continued
Other
During 2007, we received proceeds from the repayment of
$100.0 million of notes from TUI Travel, which we purchased
in March 2006.
In July 2005, TUI Travel redeemed in full its convertible preferred
shares. We received $348.1 million in cash, resulting in a net gain
of $44.2 million, primarily due to foreign exchange, which was
recorded as a component of other income.
NOTE 6. LONG-TERM DEBT
Long-term debt consists of the following (in thousands):
2007 2006
Unsecured revolving credit facility,
LIBOR plus 0.485% and a facility fee
of 0.14% due 2012 $ 30,000 $ 445,000
Unsecured senior notes and
senior debentures, 6.75% to 8.75%,
due 2008 through 2016, 2018 and 2027 2,623,029 2,804,608
€1.0 billion unsecured senior notes,
5.625%, due 2014 1,437,429 –
€750 million unsecured Bridge Loan,
EURIBOR plus 0.625%, due 2007 – 925,110
$570 million unsecured term loan,
3.77% due 2006 through 2013 447,857 529,286
$589million unsecured term loan,
4.215%due 2007 through 2014 546,929 –
$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 160,695 192,848
€6.0 million unsecured revolving
credit lines, EURIBOR plus 0.8%
to 1.25% due 2007 – 7,961
Unsecured term loans,
LIBOR plus 0.7%, due 2010 200,000 200,000
Secured term loans,
LIBOR plus 0.85%, due through 2008 – 61,149
Capital lease obligations 52,333 47,782
5,698,272 5,413,744
Less – current portion (351,725) (373,422)
Long-term portion $5,346,547 $5,040,322
During 2007, we issued €1.0 billion, or approximately $1.3 billion,
of 5.625% senior unsecured notes due 2014 at a price of 99.638%
of par.The net proceeds from the offering were used to retire
the €701.0 million, or approximately $906.5 million, outstanding
balance on our unsecured bridge loan facility obtained to finance
our acquisition of Pullmantur. The remainder of the net proceeds,
approximately €289.0 million, or approximately $374.8 million,
was used to repay a portion of the outstanding balance on our
unsecured revolving credit facility. Also in 2007, we entered into
interest rate swap agreements that effectively changed this fixed
ratedebt toEURIBOR-based floating rate debt, and we entered
intocross currency swap agreements that effectively changed
€300.0 million of floating EURIBOR-based debt to $389.1 million
floating LIBOR-based debt.
During 2007, we entered into and drew in full a $589.0 million
unsecured term loan due through 2014 at a rate of 4.215%. The
proceeds were used towards the purchase of Liberty of the Seas,
which was delivered in April 2007.
During 2007, we amended and restated our unsecured revolving
credit facility to increase the amount available from $1.0 billion to
$1.2 billion, reduce the effective interest rate to LIBOR plus 0.485%,
change the 0.175% commitment fee to a 0.140% facility fee and
extend the maturity date from March 27, 2010 to June 29, 2012.
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.
Our debt agreements contain covenants that require us, among
other things, to maintain minimum net worth and fixed charge
coverage ratio and limit our Net Debt-to-Capital ratio. We are in
compliancewith all covenants as of December 31, 2007. Follow-
ing is a schedule of annual maturities on long-term debt as of
December 31, 2007 for each of the next five years (in thousands):
Year
2008 $351,725
2009 351,318
2010 699,599
2011 703,805
2012 229,316
NOTE 7. SHAREHOLDERS’ EQUITY
Wedeclared cash dividends on our common stock of $0.15 per
sharein each of the quarters of 2007and 2006.
NOTE 8. STOCK-BASED EMPLOYEE
COMPENSATION
As discussed in Note 2, Summary of Significant Accounting
Policies,we adopted the provisions of SFAS 123R effective
January 1, 2006. Wehavethree stock-based compensation plans,
which provide for awards to our officers, directors and key
employees. The plans consist of a 1990 Employee Stock Option
Plan, a 1995 Incentive Stock Option Plan and a 2000 Stock Award
Plan. The 1990 Stock Option Plan and the 1995 Incentive Stock
Option Plan terminated by their terms in March 2000 and
February 2005, respectively. The 2000 Stock Award Plan, as
amended, provides for the issuance of (i) incentive and non-
qualified stock options, (ii) stock appreciation rights, (iii) restricted
stock,(iv) restricted stock units and (v) performance shares of up
to13,000,000 shares of our common stock. During any calendar
year, no one individual shall be granted awards of more than
500,000 shares. We awarded 271,594, 204,154 and 160,574
restricted stock units in 2007, 2006 and 2005, respectively.