Royal Caribbean Group announces entry into exchange agreements with certain holders of its outstanding 6.000% convertible senior notes due 2025
Royal Caribbean Cruises (NYSE: RCL) has announced exchange agreements with certain holders of its 6.000% Convertible Senior Notes due 2025. The exchange involves approximately $731 million of the outstanding principal amount, leaving about $419 million remaining. The Exchange Consideration will be a combination of cash and common stock, with the cash portion representing the par amount of the notes being repurchased.
The stock portion will be determined based on a five-day volume-weighted average price starting August 6, 2024. RCL plans to fund the cash portion through borrowings from revolving credit facilities. The exchange is expected to close on August 16, 2024, and aims to reduce the Company's weighted average shares outstanding on a fully diluted basis.
Royal Caribbean Cruises (NYSE: RCL) ha annunciato accordi di scambio con alcuni possessori dei suoi Titoli Senior Convertibili al 6,000% in scadenza nel 2025. Lo scambio coinvolge circa 731 milioni di dollari del valore nominale residuo, lasciando circa 419 milioni di dollari ancora da pagare. Il corrispettivo dello scambio sarà una combinazione di denaro e azioni ordinarie, con la parte in contante che rappresenta il valore nominale dei titoli riacquistati.
La parte azionaria sarà determinata sulla base di un prezzo medio ponderato per volume di cinque giorni a partire dal 6 agosto 2024. RCL prevede di finanziare la parte in contante tramite prestiti da linee di credito rotative. Si prevede che lo scambio si concluda il 16 agosto 2024 e mira a ridurre il numero medio ponderato di azioni in circolazione su base completamente diluita.
Royal Caribbean Cruises (NYSE: RCL) ha anunciado acuerdos de canje con ciertos tenedores de sus Notas Senior Convertibles del 6.000% que vencen en 2025. El canje involucra aproximadamente $731 millones del monto principal pendiente, dejando aproximadamente $419 millones restantes. La consideración del canje será una combinación de efectivo y acciones ordinarias, con la porción en efectivo representando el monto nominal de las notas que están siendo recompradas.
La porción de acciones se determinará en base a un precio promedio ponderado por volumen de cinco días a partir del 6 de agosto de 2024. RCL planea financiar la porción en efectivo a través de préstamos de líneas de crédito rotativas. Se espera que el canje se cierre el 16 de agosto de 2024 y tiene como objetivo reducir el promedio ponderado de acciones en circulación sobre una base completamente diluida.
로열 캐리비안 크루즈(Royal Caribbean Cruises) (NYSE: RCL)는 2025년 만기의 6.000% 전환형 선순위 사채 보유자들과 교환 계약을 발표했습니다. 이 교환은 약 731억 달러의 미결제 원금에 관련되며, 약 4억 1900만 달러가 남아 있습니다. 교환 고려사항은 현금과 보통주의 조합이 될 것이며, 현금 부분은 재매입되는 노트의 액면 금액을 나타냅니다.
주식 부분은 2024년 8월 6일 시작하는 5일 거래량 가중 평균 가격회전 신용 시설에서의 대출을 통해 자금을 조달할 계획입니다. 교환은 2024년 8월 16일에 마감될 것으로 예상되며, 완전히 희석된 기준으로 회사의 가중 평균 유통 주식 수를 줄이는 것을 목표로 하고 있습니다.
Royal Caribbean Cruises (NYSE: RCL) a annoncé des accords d'échange avec certains détenteurs de ses Obligations Senior Convertibles à 6,000% arrivant à échéance en 2025. L'échange concerne environ 731 millions de dollars du montant principal outstanding, laissant environ 419 millions de dollars restants. La considération de l'échange sera une combinaison de cash et d'actions ordinaires, avec la partie en espèces représentant le montant nominal des obligations rachetées.
La partie en actions sera déterminée en fonction d'un prix moyen pondéré par volume sur cinq jours à partir du 6 août 2024. RCL prévoit de financer la partie en espèces par des emprunts auprès de lignes de crédit renouvelables. L'échange devrait se clore le 16 août 2024 et vise à réduire le nombre moyen pondéré d'actions en circulation sur une base totalement diluée.
Royal Caribbean Cruises (NYSE: RCL) hat Austauschvereinbarungen mit bestimmten Inhabern seiner 6,000% wandelbaren vorrangigen Anleihen mit Fälligkeit 2025 bekannt gegeben. Der Austausch betrifft ca. 731 Millionen US-Dollar des ausstehenden Nennbetrags, was etwa 419 Millionen US-Dollar verbleibend lässt. Die Austauschvergütung wird eine Kombination aus Bargeld und Stammaktien sein, wobei der Bargeldanteil dem Nennbetrag der zurückgekauften Anleihen entspricht.
Der Aktienanteil wird basierend auf einem fünf Tage volumengewichteten Durchschnittspreis ab dem 6. August 2024 bestimmt. RCL plant, den Bargeldanteil über Kredite aus revolvierenden Kreditlinien zu finanzieren. Es wird erwartet, dass der Austausch am 16. August 2024 abgeschlossen sein wird und darauf abzielt, die gewogene durchschnittliche Anzahl der im Umlauf befindlichen Aktien auf voll verwässerter Basis zu reduzieren.
- Reduction of $731 million in convertible note principal
- Potential decrease in weighted average shares outstanding
- Utilization of revolving credit facilities for cash portion of exchange
- Increase in common stock dilution due to share issuance
- Potential increase in debt from revolving credit facility borrowings
Insights
Royal Caribbean's exchange agreement for its convertible notes is a strategic financial move with mixed implications. The company is effectively refinancing $731 million of its 2025 convertible notes, reducing its debt burden but potentially diluting existing shareholders.
The use of a combination of cash and stock for the exchange is noteworthy. By funding the cash portion through revolving credit facilities, RCL maintains financial flexibility but increases its short-term debt. The stock portion will lead to
This move could be seen as positive for RCL's balance sheet in the near term, potentially improving debt ratios and reducing interest expenses. However, investors should closely monitor the impact on earnings per share and the company's overall leverage position.
This exchange agreement signals investor confidence in Royal Caribbean's stock, as noteholders are willing to convert debt to equity. It's a proactive approach to debt management, potentially improving RCL's financial flexibility as the cruise industry continues its post-pandemic recovery.
The timing is interesting, coinciding with the summer travel season. If RCL's recent performance has been strong, this could be an opportune moment for the exchange, possibly resulting in a more favorable conversion rate for the company.
Investors should watch for market reaction to this news. A positive response could indicate that the market views this as a smart financial move, potentially leading to improved
The 2025 Notes to be exchanged represent approximately
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the securities described herein or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Special Note Regarding Forward-Looking Statements
Certain statements in this press release relating to, among other things, the exchange agreements and the transactions contemplated thereby constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding the Exchange Consideration and the expected timing of the exchange transactions. Words such as "anticipate," "believe," "considering," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would" and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, but they are based on judgments and are inherently uncertain. Furthermore, they are subject to risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment on key aspects of the Company's business, such as the demand for cruises, passenger spending, and operating costs; changes in operating and financing costs; the unavailability or cost of air service; adverse events such as terrorist attacks, war and other similar events; disease outbreaks and an increase in concern about the risk of illness on the Company's ships or when traveling to or from the Company's ships, all of which could reduce demand; incidents or adverse publicity concerning the Company's ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, natural disasters and seasonality on the Company's business; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; vacation industry competition and changes in industry capacity and overcapacity; unavailability of ports of call; an inability to source the Company's crew or the Company's provisions and supplies from certain places; the uncertainties of conducting business internationally and expanding into new markets and new ventures; the Company's ability to obtain sufficient financing, capital or revenues to satisfy liquidity needs, capital expenditures, debt repayments and other financing needs; the Company's indebtedness, any additional indebtedness the Company may incur and restrictions in the agreements governing the Company's indebtedness that limit the Company's flexibility in operating its business; changes in foreign travel policy of
Forward-looking statements should not be relied upon as predictions of actual results. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the Company on the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
About Royal Caribbean Group
Royal Caribbean Group (NYSE: RCL) is a vacation industry leader with a global fleet of 68 ships across its five brands traveling to approximately 1,000 destinations. With a mission to deliver the best vacations responsibly, Royal Caribbean Group serves millions of guests each year through its portfolio of best-in-class brands, including Royal Caribbean International, Celebrity Cruises, and Silversea; and expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The company also owns
Investor Relations contact: Blake Vanier
Email: bvanier@rccl.com
Media contact: Melissa Castro
Email: corporatecommunications@rccl.com
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SOURCE Royal Caribbean Group
FAQ
What is the total amount of Royal Caribbean's (RCL) 2025 Notes being exchanged?
How will Royal Caribbean (RCL) determine the Exchange Consideration for the 2025 Notes?
When is the expected closing date for Royal Caribbean's (RCL) exchange transaction?
How much of Royal Caribbean's (RCL) 2025 Notes will remain outstanding after the exchange?
