Royal Caribbean’s stock rallies after new $700 million loan facility secured

/ / News

Shares of Royal Caribbean Group rose 4.4% in premarket trading Wednesday, after the cruise operator said it has secured a $700 million term loan facility from Morgan Stanley. If the company draws on the facility, the loan will bear interest at Libor plus 3.75%, and will mature in 364 days. When Royal Caribbean reported second-quarter results earlier this week, the company said it has liquidity of about $4.1 billion as of June 30, has debt maturities of $300 million in 2020 and $1.3 billion in 2021, and estimated a monthly cash burn rate of $250 million to $290 million during a prolonged suspension of operations as a result of the COVID-19 pandemic. The stock has soared 61.5% over the past three months through Tuesday, but has still shed 56.1% year to date, while the S&P 500 has gained 3.2% this year.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.