Document:

Document

     

Exhibit 10.9

Supplemental Agreement in relation to the extension of the 
waiver period for financial covenants in the EUR Facility Agreement
in respect of m.v. ‘Harmony of the Seas’

Dated:     4 August     2020

1We refer to:
(a)the EUR facility agreement dated 9 July 2013 (as amended and restated from time to time, including by way of the Amendment Agreement (as defined below), the Facility Agreement) in respect of the financing of the acquisition of m.v. Harmony of the Seas (ex hull no. A34) and made between, amongst others, Royal Caribbean Cruises Ltd. as borrower (the Borrower), Société Générale as facility agent (the Facility Agent) and the banks and financial institutions listed therein as lenders (the Lenders); 

(b)the amendment agreement dated 6 May 2020 (the Amendment Agreement) entered into by the parties to the Facility Agreement, and pursuant to which the Facility Agreement was amended in accordance with the Principles (as defined therein); and

(c)the consent request email sent by the Borrower to the Facility Agent on 24 June 2020 (the Consent Request), pursuant to which the Borrower has requested an extension of the application of certain amendments previously made to the Facility Agreement by virtue of the Amendment Agreement.
2Words and expressions defined in the Facility Agreement shall have the same meaning when used in this agreement. 
3Pursuant to the Amendment Agreement, it has been agreed that the financial covenants set out in clause 9.4 of the Facility Agreement (the Financial Covenants) shall continue to be tested in accordance with the existing terms of the Facility Agreement (and the reporting obligations of the Borrower in respect of such Financial Covenants shall continue to apply) but that, subject to the conditions set out in clause 11.1(e) of the Facility Agreement, any breach of the Financial Covenants arising during the Advanced Loan Deferral Period shall not constitute a Mandatory Prepayment Event (the Financial Covenant Waiver). 
4It is hereby agreed that pursuant to the Consent Request, the Financial Covenant Waiver shall, with effect from the date of this agreement, be extended from the last day of the Advanced Loan Deferral Period until and including 31 December 2021 (and the reference to ‘Advanced Loan Deferral Period’ in each of clause 8.1(n) to (p) (inclusive) and clause 11.1(e) of the Facility Agreement shall be construed accordingly). 
5The above extension is granted on the basis that a breach of the Financial Covenants which arises at a time when an Event of Default under clause 10.1(e) to (g) inclusive of the Facility Agreement has occurred and is continuing, or a Mandatory Prepayment Event under clauses 11.1(o) or 11.1(p) of the Facility Agreement has occurred, shall continue to constitute a Mandatory Prepayment Event.  
6In addition to the conditions referred to in paragraph 5 above, it is acknowledged and agreed that the extension granted pursuant to paragraph 4 above (or, as the case may be in relation to (a) below, the continued availability of that extension) is subject to the following conditions:
(a)the execution of all of the Guarantees by the Guarantors (as such terms are defined in the schedule to this letter) in favour of, amongst others, the Lenders, together with all necessary ancillary and supporting documentation related to the execution of such Guarantees (including such subordination and intercreditor documentation as may be required by the senior creditors), by no later than 15 October 2020 (or such later date as may be agreed by the Lenders and BpiFAE) and with such Guarantees being 
    
    

 

executed in favour of the Lenders and any such ancillary and supporting documentation to which the Lenders are a party to be in a form and substance, and documented in a manner, mutually acceptable to, amongst others, the Borrower, the Lenders and BpiFAE (each acting reasonably); and

(b)the payment by the Borrower to the Facility Agent (for the account of the Lenders) of a testing suspension fee in the amount of EUR5,000 per Lender which has, as at the date of this agreement, provided its approval in respect of the matters contained in this agreement to the Facility Agent. The fee shall be payable on the date falling no later than five Business Days after the date of this Agreement and shall be made free and clear of any deduction, restriction or withholding and in immediately available freely transferable cleared funds and in Euros to the following account or such other account(s) as the Facility Agent may notify the Borrower of in advance:
Beneficiary : SOCIETE GENERALE PARIS
SWIFT: 
Account: 
Ref. 

7The Borrower represents and warrants that each of the representations contained in clause 7 of the Facility Agreement shall be deemed repeated by the Borrower (by reference to any applicable date stated therein but otherwise by reference to the facts and circumstances then existing) at the date of this agreement.
8Save as expressly amended by this agreement, all other terms and conditions of the Facility Agreement and the other Finance Documents shall remain unaltered in full force and effect.
9This agreement is a Finance Document.
10No term of this agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by anyone who is not a party to this agreement.
11This agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this agreement.
12This agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.  The provisions of clause 13.14 of the Facility Agreement shall apply with equal effect to this agreement. 

/s/ ANTJE M. GIBSON
For and on behalf of
Royal Caribbean Cruises Ltd.  
as Borrower

/s/ JEAN ETIENNE ERRERA
For and on behalf of
Société Générale
as Facility Agent on behalf of the Lenders 

    

 

Schedule
Guarantees 

For the purpose of paragraph 6(a) of this letter:
Guarantees means:
(a)the third priority guarantee to be granted by RCI Holdings LLC (RCI Holdings), with such guarantee being subordinate in priority to:
(i)    the first priority guarantee dated 9 June 2020 granted by RCI Holdings in favour of the holders (or a collateral agent on their behalf) of the USD1,000,000,000 9.125% Senior Notes due 2023 (or any other indebtedness benefitting from a first ranking guarantee from RCI Holdings in an amount no greater than USD1,700,000,000) as such first priority guarantee may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; 
(ii)    each of the second priority guarantees dated 26 June 2020 granted by RCI Holdings in favour of (A) Nordea Bank AB (publ), New York Branch as agent on behalf of the lenders under the USD1,550,000,000 revolving credit facility maturing in 2022, (B) The Bank of Nova Scotia as agent on behalf of the lenders under the USD1,925,000,000 revolving credit facility maturing in 2024, (C) Bank of America, N.A. as agent on behalf of the lenders under the USD1,000,000,000 term loan maturing on 5 April 2022, (D) Nordea Bank ABP, New York Branch as agent on behalf of the lenders under the USD300,000,000 term loan maturing on 7 June 2028, (E) Sumitomo Mitsui Banking Corporation as agent on behalf of the lenders under the USD55,827,065 term loan maturing on 5 December 2022, (F) Skandinaviska Enskilda Banken AB (publ) as agent on behalf of the lenders under the €80,000,000 term loan maturing in November 2024, (G) Industrial and Commercial Bank of China Limited, New York Branch as agent on behalf of the lenders under the USD130,000,000 term loan maturing on 2 February 2023 and (H) SMBC Leasing and Finance, Inc. as agent on behalf of the beneficiaries of a guarantee dated 18 July 2016 in connection with liabilities relating to the “Lease”, the “Construction Agency Agreement”, the “Participation Agreement” and any other “Operative Document” (as each term is defined in such guarantees) (the agents referred to in this clause (ii), the Agents) as such second priority guarantees may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; 
(iii)    the second priority guarantee to be granted by RCI Holdings in favour of The Bank of Nova Scotia as lender under the term loan maturing on 13 September 2021 with a current outstanding balance of USD1,735,902 (the Falmouth Lender) as such second priority guarantee may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; and
(iv)    each of the second priority guarantees granted (or to be granted) by RCI Holdings in favour of certain credit card providers or a representative on their behalf (the Credit Card Providers) in connection with cash collateral and reserve requirements in respect of cruise ticket sales as such second priority guarantee may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; 
    

 

(b)the second priority guarantee to be granted by each of RCL Holdings LLC (RCL LLC), Torcatt Enterprises S.A. (Torcatt), RCL Holdings Cooperatief UA (RCL Holdings), RCL Cruises Ltd (RCL Cruises) and RCL Investments Ltd (RCL Investments), with such guarantee being subordinate in priority to:
(i)    each of the first priority guarantees dated 3 June 2020, granted by each of RCL LLC, Torcatt, RCL Holdings, RCL Cruises and RCL Investments in favour of each of the Agents as such first priority guarantees may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing;
(ii)    the first priority guarantees to be granted by each of RCL LLC, Torcatt, RCL Holdings, RCL Cruises and RCL Investments in favour of the Falmouth Lender as such first priority guarantee may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; and
(iii)    each of the first priority guarantees granted (or to be granted) by each of RCL LLC, Torcatt, RCL Holdings, RCL Cruises and RCL Investments in favour of each of the Credit Card Providers as such first priority guarantee may be amended or replaced from time to time in respect of any amendment of the financing from those parties or any refinancing of that financing; and
(c)the first priority guarantee to be granted by Celebrity Cruise Lines Inc., including any successor by merger, transfer of assets, or otherwise, provided that such successor shall be incorporated in Liberia (Celebrity Cruise Lines).
Guarantors means, RCI Holdings, RCL LLC, RCL Cruises, RCL Investments, Torcatt, RCL Holdings and Celebrity Cruise Lines.Document

Exhibit 10.10

Supplemental agreement in relation to certain amendments in connection 
with the Silversea negative covenants and the exercise of the Buyer’s Stretch Option

Dated: 29 August  2020

1.We refer to (a) the novation agreement dated 24 July 2017 (as amended and restated pursuant to a supplemental agreement dated 12 March 2020, the Novation Agreement) entered into between, amongst others, Hoediscus Finance Limited as existing borrower, Royal Caribbean Cruises Ltd. as new borrower (the New Borrower), Citibank Europe plc, UK Branch as facility agent (the Facility Agent) and the banks and financial institutions listed therein as lenders (the Lenders) and (b) the form of facility agreement in respect of hull no. L34 (the Facility Agreement) appended to the Novation Agreement.
2.Words and expressions defined in the Novation Agreement shall have the same meaning when used in this agreement. 
3.It is acknowledged that the New Borrower has elected to exercise the Buyer’s Stretch Option (as defined in the Building Contract).  In connection with such election, certain Change Orders have been (or will be) agreed between the New Borrower and the Builder in order to effect the modifications required to be made to the Vessel in accordance with the Buyer’s Stretch Option.
4.It is further acknowledged that following the election of the Buyer’s Stretch Option, there is an inconsistency between the terms of the Novation Agreement and the proposed terms of the BpiFAE Insurance Policy to be issued prior to the First Payment Date (as defined in the Receivable Purchase Agreement) with regard to the potential liability to breakage costs with respect to that part of the Commitment that could be used to fund the Change Orders in respect of the Buyer’s Stretch Option.  In order to address such inconsistency, it is hereby agreed that with effect on and from the date of this agreement, the Novation Agreement shall be amended by deleting clause 10.5 and replacing it with the following:
"Clause 10.5    Fixed rate breakage costs
If the New Borrower:
    (a)    voluntarily cancels all or any of the Commitment under clause 10.2;
 (b)    voluntarily cancels all or any of the Commitment after it has exercised its rights under clause 4.3 of the Buyer Consent Agreement; or

(c)    subject to the proviso below, does not borrow the Maximum Loan Amount as a result of the Contract Price being reduced in accordance with Article III of the Building Contract (resulting in a corresponding cancellation of part of the Commitment), 

the New Borrower shall pay to the Facility Agent breakage costs in the amount notified to it following a calculation of such breakage costs based on the methodology referred to in Section 4.4.1b) of the Novated Credit Agreement and on the basis that for this purpose references in such clause to prepayment and prepay shall be treated as references to cancellation and the basis for the calculation of any breakage costs shall be determined by reference to:
(i)     if:
(A)    the Commitment is cancelled in full, the Threshold Amount (as defined below); or 

 

(B)    the Commitment is partially cancelled, the Threshold Amount minus the un-cancelled Commitment; and
(ii)    24 assumed semi-annual repayment instalments starting from the Expected Delivery Date at the Signing Date.  
Provided however that no breakage costs will be charged under clauses 10.5(a), 10.5(b) or 10.5(c) above if the Loan (as defined in the Novated Credit Agreement) assumed by and/or advanced to the New Borrower on the Novation Effective Date or otherwise pursuant to any restated or new credit agreement entered into in accordance with clause 5.3 equals or exceeds 80% of the aggregate amount of:
(1) €631,167,000 (being the amount of the Fixed Basic Contract Price); and
(2) the total value of the Change Orders (as such term is defined in the Receivable Purchase Agreement) forming part of the Change Order Amount which have, as at the date of the notification from the Facility Agent referred to in this clause 10.5, been agreed in connection with the work required in respect of the Buyer’s Stretch Option (as defined in the Building Contract) and which therefore form or (absent such cancellation) would have formed, part of the Final Payment, such value being for this purpose €51,500,000, 
(such aggregate amount being the Threshold Amount).  
To the extent that an event of the type contemplated by this clause 10.5 does occur, the New Borrower undertakes that it shall provide (or procure that the Builder provides) to the Facility Agent promptly upon request any information that may be required by the Facility Agent in order for it to verify the Change Order Amount applicable to the Buyer’s Stretch Option (as defined in the Building Contract),and to determine whether breakage costs are required to be charged pursuant to clauses 10.5(a), 10.5(b) or 10.5(c) above. 
It is acknowledged and agreed for all purposes of this Agreement and the Novated Credit Agreement that the New Borrower shall not be liable to pay (or indemnify any Indemnified Party under Section 11.4 of the Novated Credit Agreement in respect of) any breakage costs related to the Fixed Rate in the event the Fixed Rate is not available as a result of any of the conditions precedent set forth in Section 5.1.10 of the Novated Credit Agreement not being satisfied for any reason other than due to the New Borrower’s own breach of the terms of this Agreement.".
5.In addition to the matters set out above, it is acknowledged that the New Borrower has recently made certain amendments to a number of its other facility agreements in order to provide further exemptions to restrictive covenants equivalent to those set out in sections 7.2.2 and 7.2.3 of the Facility Agreement.  It has been agreed that such exemptions shall also be included in the Facility Agreement, and accordingly the Facility Agreement shall, with effect on and from the date of this agreement, be amended as follows:
(a)a new sub-paragraph f) shall be inserted into section 7.2.2 of the Facility Agreement as follows (and the remainder of the section shall be construed accordingly):

“Indebtedness of Silversea Cruise Holding Ltd. and its Subsidiaries ("Silversea") identified in Section 1 of Exhibit F hereto”; 

(b)a new sub-paragraph r) shall be inserted into section 7.2.3 of the Facility Agreement as follows (and the remainder of the section shall be construed accordingly):

"Liens on any property of Silversea identified in Section 2 of Exhibit F hereto"; and

    

 

(c)a new exhibit in the form set out in the schedule to this agreement shall be inserted as a new exhibit F of the Facility Agreement entitled "Exhibit F – Silversea Indebtedness and Liens".
6.Save as expressly amended by this agreement, all other terms and conditions of the Novation Agreement, the Facility Agreement and the other Finance Documents shall remain unaltered and in full force and effect.
7.This agreement is a Finance Document (as defined in the Principal Agreement) and a Loan document (as defined in the Facility Agreement).
8.No term of this agreement is enforceable under the Contracts (Rights of Third Parties) Act 1999 by anyone who is not a party to this agreement.
9.This agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this agreement.
10.This agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.  The provisions of clause 14.2 of the Novation Agreement shall apply with equal effect to this agreement. 

    

 

/s/ ELAINE ANDERSON
Elaine Anderson - Director
For and on behalf of
Hoediscus Finance Limited 
as Existing Borrower

/s/ ANTJE M. GIBSON
Antje M. Gibson
For and on behalf of
Royal Caribbean Cruises Ltd.  
as New Borrower

/s/ CLAIRE CRAWFORD
Claire Crawford, Delegated Signatory 
For and on behalf of
Citibank Europe Plc, UK Branch
as Facility Agent on behalf of the Lenders

/s/ CHRISTOPHER CONWAY
Christopher Conway, Managing Director
For and on behalf of
Citibank N.A., London Branch
as Global Coordinator

/s/ VIOLA JAPAUL
Viola Japaul, Attorney 
For and on behalf of
Citicorp Trustee Company Limited
as Security Trustee on behalf of the Finance Parties

/s/ GUY WOELFEL
Guy Woelfel, Authorised Signatory
/s/ PHILIPPE ABONNEAU
Philippe Abonneau, Authorised Signatory
For and on behalf of
HSBC France 
as French Coordinating Bank

/s/ HERVE BILLI
Herve Billi
/s/ ROY MOURAD
Roy Mourad
For and on behalf of
Sumitomo Mitsui Banking Corporation Europe Limited, Paris Branch 
as ECA Agent on behalf of the Lenders

    

 

Schedule 

Exhibit F
Silversea Liens and Indebtedness

			
	SECTION 1: Existing Indebtedness of Silversea
(a)     The obligations of the Borrower or its Subsidiaries in connection with those certain Bareboat Charterparties with respect to (i) the vessel SILVER EXPLORER dated July 22, 2011 between Silversea Cruises Ltd. and Hammonia Adventure and Cruise Shipping Company Ltd. and (ii) the vessel SILVER WHISPER dated March 15, 2012 between Whisper S.p.A. and various lessors, and the replacement, extension, renewal or amendment of each of the foregoing without increase in the amount or change in any direct or contingent obligor of such obligations, (the “Existing Silversea Leases”); 
(b)    Indebtedness arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time; and 
(c)     Indebtedness secured by Liens of the type described in Section 2 of this Exhibit F.
SECTION 2: Existing Liens of Silversea
(a)     Liens securing the $620,000,000 in principal amount of 7.25% senior secured notes due 2025 issued by Silversea Cruise Finance Ltd. pursuant that certain Indenture dated as of January 30, 2017; 
(b)     Liens on the vessels SILVER WHISPER and SILVER EXPLORER existing as of 29 April 2020 and securing the Existing Silversea Leases (and any Lien on such vessels securing any refinancing of the Existing Silversea Leases, so long as such Vessel was subject to a Lien securing the Indebtedness being refinanced immediately prior to such refinancing);  
(c)     Liens on the Vessel with Hull 6280 built or being built at Fincantieri S.p.A. and arising pursuant to that certain Bareboat Charterparty dated May 17, 2018 by and between Hai Xing 1702 Limited and Silversea New Build Eight Ltd., as such agreement may be amended from time to time (and any Lien on such Vessel securing any refinancing of such bareboat charterparty); and 
(d)     Liens securing Indebtedness of the type described in Section 1 of this Exhibit F.

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