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With just nine months
to go until Royal Caribbean is scheduled to take delivery of the
world's largest cruise ship, the much-ballyhooed Oasis of the Seas,
financing to pay for the $1.2 billion vessel remains in doubt, the
company said Tuesday in a regulatory filing.
"Although we believe that we will be able to (finance the ship),
there can be no assurance that we will be able to do so or that we
will be able to do so on acceptable terms," the company warned in
its annual 10-K filing with the U.S. Securities and Exchange
Commission.
The 5,400-passenger vessel, which has been under construction in
Finland for several years, is scheduled to be delivered to Royal
Caribbean in November.
Royal Caribbean noted it has commitments for government financing
guarantees from Finnvera, the export credit agency of Finland, for
80% of the financed amount of Oasis and a sister ship also under
construction, Allure of the Seas. But it has yet to line up actual
financing for the vessels.
"The disruption in the credit markets has resulted in a lack of
liquidity worldwide (that) may affect our ability to successfully
raise capital or to do so on acceptable terms," the company warned.
Royal Caribbean noted credit rating agencies Standard & Poors and
Moody's both have lowered its credit rating over the past year, and
cash flow at the company is under pressure due to the decrease in
consumer cruise spending as a result of the current economic
climate.
"These factors may prevent us from having sufficient available
capital or financing to meet our needs or to do so on acceptable
terms," the company said. "There is no assurance that our credit
ratings will not be lowered further. The lowering of our credit
ratings may increase our cost of financing and can make it more
difficult for us to access the financial markets." |
