Stock Alert: Royal Caribbean Cruises Jumps 17% On Getting Financing

(RTTNews) - Shares of Royal Caribbean Cruises Ltd. (RCL) are currently climbing more than 17 percent in Tuesday's trading at $33.09, after the luxury cruise operator said it secured a $2.2 billion credit line.

The shares have traded in a range of $19.25 to $135.32 in the past 52 weeks. Cruise line stocks are recovering after suffering sharp losses in recent days amid the coronavirus outbreak. Cruise ship passengers are at increased risk of person-to-person spread of infectious diseases, including COVID-19.

Monday, Royal Caribbean said it has entered into a $2.2 billion, 364-day secured term loan facility, further enhancing its liquidity position. The company noted that the facility can be extended at its option for an additional 364 days. The company has borrowed the full amount available under the term loan to further bolster its liquidity.

Including this new financing, Royal Caribbean has more than $3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities. In addition, the company has committed financing for all of its new ships on order.