MIAMI — Royal Caribbean Cruises Ltd. is taking out a multi-billion-dollar loan to shore up cash flows as the COVID-19 pandemic continues to hit the cruise industry hard.

Earlier this week, the cruise line announced that it has entered into a US$2.2 billion, 364-day secured term loan facility, further enhancing its liquidity position.

Morgan Stanley, J.P. Morgan, Bank of America, BNP Paribas and Goldman Sachs acted as joint lead arrangers and bookrunners on the loan.

The facility can be extended at the company’s option for an additional 364 days. Royal Caribbean has borrowed the full amount available under the term loan to further bolster its liquidity.

In addition to this new financing, the cruise line has over $3.6 billion of liquidity comprised of cash deposits and its existing undrawn revolving credit facilities. In addition, it has committed financing for all of its new ships on order.

“This is a period of unprecedented disruption for the cruise industry,” said Jason T. Liberty, executive vice president and CFO. “We continue to take decisive actions to protect the company’s financial and liquidity positions as they enable us to keep focused on our guests, our crew and our long-term plans.”