Royal Caribbean Group announces entry into exchange agreements with certain holders of its outstanding 6.000% convertible senior notes due 2025
Royal Caribbean Group (NYSE: RCL) has announced exchange agreements with certain holders of its 6.000% Convertible Senior Notes due 2025. The exchange involves approximately $200 million of outstanding principal amount, which will be exchanged for a combination of cash and company common stock.
The Exchange Consideration will be determined based on the volume-weighted average stock price during a one-day averaging period starting March 13, 2025. The cash portion will cover the par amount of the notes being repurchased, funded through existing liquidity. After the exchange, about $123 million in aggregate principal amount of the 2025 Notes will remain outstanding.
The transactions are expected to close on March 18, 2025, and will reduce the Company's weighted average shares outstanding on a fully diluted basis.
Royal Caribbean Group (NYSE: RCL) ha annunciato accordi di scambio con alcuni detentori dei suoi 6.000% Convertible Senior Notes in scadenza nel 2025. Lo scambio coinvolge circa 200 milioni di dollari di importo principale in circolazione, che saranno scambiati per una combinazione di denaro contante e azioni ordinarie della società.
Il corrispettivo dello scambio sarà determinato in base al prezzo medio ponderato per volume delle azioni durante un periodo di media di un giorno che inizia il 13 marzo 2025. La parte in contante coprirà l'importo nominale delle note che vengono riacquistate, finanziato attraverso la liquidità esistente. Dopo lo scambio, rimarranno in circolazione circa 123 milioni di dollari di importo principale aggregato delle 2025 Notes.
Le transazioni dovrebbero chiudersi il 18 marzo 2025 e ridurranno il numero medio ponderato di azioni in circolazione su base completamente diluita.
Royal Caribbean Group (NYSE: RCL) ha anunciado acuerdos de intercambio con ciertos tenedores de sus 6.000% Convertible Senior Notes con vencimiento en 2025. El intercambio involucra aproximadamente 200 millones de dólares de monto principal pendiente, que se intercambiarán por una combinación de efectivo y acciones ordinarias de la empresa.
La consideración del intercambio se determinará en función del precio promedio ponderado por volumen de las acciones durante un período de promediado de un día que comienza el 13 de marzo de 2025. La parte en efectivo cubrirá el monto nominal de las notas que se están recomprando, financiado a través de la liquidez existente. Después del intercambio, quedará un monto principal agregado de aproximadamente 123 millones de dólares de las 2025 Notes.
Se espera que las transacciones se cierren el 18 de marzo de 2025, y se reducirá el número promedio ponderado de acciones en circulación en base totalmente diluida.
로얄 캐리비안 그룹 (NYSE: RCL)는 2025년 만기 6.000% 전환 선순위 채권의 특정 보유자와 교환 계약을 발표했습니다. 이번 교환은 약 2억 달러의 미지급 원금이 포함되며, 현금과 회사 보통주로 교환됩니다.
교환 대가는 2025년 3월 13일부터 시작되는 하루 평균 기간 동안의 거래량 가중 평균 주가를 기준으로 결정됩니다. 현금 부분은 재구매되는 채권의 액면가를 충당하며, 기존 유동성을 통해 자금을 조달합니다. 교환 후에는 약 1억 2천 3백만 달러의 2025 Notes 원금이 남게 됩니다.
거래는 2025년 3월 18일에 마감될 것으로 예상되며, 완전 희석 기준으로 회사의 가중 평균 발행 주식 수를 줄일 것입니다.
Royal Caribbean Group (NYSE: RCL) a annoncé des accords d'échange avec certains détenteurs de ses 6,000% Obligations Senior Convertibles arrivant à échéance en 2025. L'échange concerne environ 200 millions de dollars de montant principal en circulation, qui seront échangés contre une combinaison de liquidités et d'actions ordinaires de la société.
La contrepartie de l'échange sera déterminée en fonction du prix moyen pondéré par le volume des actions pendant une période de moyenne d'un jour commençant le 13 mars 2025. La partie en espèces couvrira le montant nominal des obligations rachetées, financée par la liquidité existante. Après l'échange, environ 123 millions de dollars de montant principal agrégé des Obligations 2025 resteront en circulation.
Les transactions devraient se clôturer le 18 mars 2025 et réduiront le nombre moyen pondéré d'actions en circulation sur une base entièrement diluée.
Royal Caribbean Group (NYSE: RCL) hat Austauschvereinbarungen mit bestimmten Inhabern seiner 6,000% wandelbaren Senior Notes mit Fälligkeit im Jahr 2025 angekündigt. Der Austausch betrifft ungefähr 200 Millionen Dollar an ausstehendem Nennbetrag, die gegen eine Kombination aus Bargeld und Stammaktien des Unternehmens eingetauscht werden.
Die Austauschvergütung wird basierend auf dem volumengewichteten Durchschnittspreis der Aktien während eines einjährigen Durchschnittszeitraums, der am 13. März 2025 beginnt, bestimmt. Der Bargeldanteil wird den Nennbetrag der zurückgekauften Notes abdecken, finanziert durch vorhandene Liquidität. Nach dem Austausch werden etwa 123 Millionen Dollar an aggregiertem Nennbetrag der 2025 Notes ausstehen.
Die Transaktionen sollen am 18. März 2025 abgeschlossen werden und werden die gewogene durchschnittliche Anzahl der ausstehenden Aktien auf vollständig verwässerter Basis reduzieren.
- Reduction in outstanding convertible notes by $200 million
- Expected decrease in diluted share count
- Company has sufficient liquidity to fund cash portion of exchange
- Potential dilution from issuance of new common shares for exchange
- $123 million in convertible notes still remaining outstanding
Insights
Royal Caribbean's exchange agreement for its convertible notes represents a strategic debt management move with positive implications. The company is effectively exchanging
The transaction provides three key benefits:
- Reduces debt obligations approaching maturity next year
- Utilizes existing liquidity for the cash portion, indicating healthy balance sheet position
- Decreases weighted average shares outstanding on a fully diluted basis, which is favorable for existing shareholders
This last point is particularly noteworthy. Although the transaction involves issuing some shares as part of the exchange consideration, the net effect is actually anti-dilutive. This occurs because convertible notes are already included in diluted EPS calculations based on their potential conversion. By settling a portion in cash and likely issuing fewer shares than would occur upon full conversion, Royal Caribbean is effectively reducing potential share count.
After completion, only
This transaction reflects prudent financial management and Royal Caribbean's continued focus on optimizing its capital structure while maintaining operational flexibility.
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, are based on judgments, are inherently uncertain and are subject to risks, uncertainties and other factors, which 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 costs; the unavailability or cost of air service; disease outbreaks and increased concern about the risk of illness on the Company's ships or when traveling to or from the Company's ships, which could cause a decrease in demand, guest cancellations and ship redeployments; 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, climate events and/or natural disasters on the Company's business; risks related to the Company's sustainability activities; the impact of issues at shipyards, including ship delivery delays, ship cancellations or ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity and overcapacity; inability to manage the Company's cost and capital allocation strategies; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market the Company's cruises; reliance on third-party service providers; potential unavailability of insurance coverage; the risks and costs related to cyber security attacks, data breaches, protecting the Company's systems and maintaining data integrity and security; uncertainties of a foreign legal system as the Company is not incorporated in
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 67 ships across its five brands traveling to all seven continents. 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 an expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The company also owns
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SOURCE Royal Caribbean Group
FAQ
How much of RCL's 2025 Convertible Notes are being exchanged in March 2025?
What is the remaining balance of RCL's 2025 Convertible Notes after the exchange?
How will RCL fund the cash portion of the 2025 Notes exchange?
When will RCL's convertible notes exchange transaction close?
How will the exchange affect RCL's share count?
