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Property and Equipment
3 Months Ended
Mar. 31, 2013
Property and Equipment  
Property and Equipment

Note 5.  Property and Equipment

 

In March 2013, our conditional agreement with STX France S.A. to build the third Oasis-class ship for Royal Caribbean International became effective.  We received a commitment for the unsecured financing of the ship for up to 80% of the ship’s cash contract price.  Compagnie Francaise d’Assurance pour le Commerce Extérieur (“COFACE”), the official export credit agency of France, has agreed to guarantee to the lenders 100% of the financing.  The ship will have a capacity of approximately 5,400 berths and is expected to enter service in the second quarter of 2016.  Pullmantur’s Atlantic Star, which has been out of operation since 2009, was transferred to an affiliate of STX France S.A. as part of the consideration.  The Atlantic Star was transferred at carrying value, which approximates fair value.  The transfer did not result in a gain or a loss.