Royal Caribbean Group announces upsizing and pricing of $1.5 billion offering of senior unsecured notes to refinance existing indebtedness
Royal Caribbean Group (NYSE: RCL) has announced the pricing of a $1.5 billion offering of senior unsecured notes due 2031, upsized from the initially announced $1.0 billion. The notes, carrying a 5.625% interest rate, are set to mature on September 30, 2031, with issuance expected around September 26, 2024. The company plans to use the proceeds to refinance existing debt, including redeeming all outstanding 7.250% Senior Notes due 2030 and repaying the Silver Dawn finance lease. This move will result in RCL having no remaining guaranteed or secured notes outstanding. The offering is to qualified institutional buyers and certain non-U.S. persons, adhering to SEC regulations.
Royal Caribbean Group (NYSE: RCL) ha annunciato il prezzo di un
Royal Caribbean Group (NYSE: RCL) ha anunciado el precio de una emocionante emisión de notas senior no garantizadas de 1,5 mil millones de dólares con vencimiento en 2031, que se ha ampliado desde los 1,0 mil millones inicialmente anunciados. Las notas, con una tasa de interés del 5,625%, vencerán el 30 de septiembre de 2031, y se espera que la emisión ocurra alrededor del 26 de septiembre de 2024. La compañía planea utilizar los ingresos para refinanciar la deuda existente, que incluye el canje de todas las notas senior del 7,250% que vencen en 2030 y el pago del arrendamiento financiero de Silver Dawn. Este movimiento resultará en que RCL no tenga títulos garantizados o colaterales pendientes*. La oferta está dirigida a compradores institucionales calificados y a ciertas personas no estadounidenses, cumpliendo con las regulaciones de la SEC.
로얄 캐리비안 그룹 (NYSE: RCL)은 2031년 만기에 이르는 15억 달러 규모의 비보장 선순위 채권 공모의 가격을 발표했습니다. 이는 처음 발표된 10억 달러에서 증가한 것입니다. 이 채권은 5.625%의 이자율을 가지며, 2031년 9월 30일에 만기가 예정되어 있으며, 발행은 2024년 9월 26일 경으로 예상됩니다. 회사는 수익금을 기존 채무 재융자에 사용할 계획이며, 여기에는 2030년 만기 7.250% 선순위 채권을 모두 상환하고 실버 돈의 금융 리스를 갚는 것도 포함됩니다. 이 조치로 인해 RCL은 남은 보증된 또는 담보가 있는 채권이 없게 됩니다*. 이번 공모는 자격 있는 기관 투자자 및 특정 비미국인에게 제공되며, SEC 규정을 준수합니다.
Royal Caribbean Group (NYSE: RCL) a annoncé le prix d'une émission de billets senior non garantis de 1,5 milliard de dollars arrivant à échéance en 2031, augmentée par rapport aux 1,0 milliard de dollars initialement annoncés. Les billets, portant un taux d'intérêt de 5,625%, arriveront à échéance le 30 septembre 2031, avec une émission prévue autour du 26 septembre 2024. La société prévoit d'utiliser les recettes pour refinancer sa dette existante, y compris le remboursement de toutes les obligations senior 7,250% arrivant à échéance en 2030 et le remboursement du leasing financier de Silver Dawn. Cette opération entraînera que RCL n'ait aucune obligation garantie ou sécurisée restante*. L'offre s'adresse à des investisseurs institutionnels qualifiés et à certaines personnes non américaines, conformément aux réglementations de la SEC.
Die Royal Caribbean Group (NYSE: RCL) hat die Preise für ein 1,5 Milliarden Dollar umfassendes Angebot von nicht besicherten vorrangigen Anleihen mit Fälligkeit im Jahr 2031 bekannt gegeben, das von ursprünglich angekündigten 1,0 Milliarden aufgestockt wurde. Die Anleihen, die mit einem Zinssatz von 5,625% ausgestattet sind, haben eine Fälligkeit am 30. September 2031, wobei die Emission voraussichtlich rund um den 26. September 2024 erfolgt. Das Unternehmen plant, die Einnahmen zur Refinanzierung bestehender Schulden zu verwenden, einschließlich der Rückzahlung aller ausstehenden 7,250% Senior Notes, die 2030 fällig werden, sowie der Rückzahlung des Finanzierungsleasing von Silver Dawn. Dieser Schritt wird dazu führen, dass RCL keine verbleibenden garantierten oder gesicherten Anleihen ausstehen hat*. Das Angebot richtet sich an qualifizierte institutionelle Anleger und bestimmte Nicht-US-Personen und hält sich an die Vorschriften der SEC.
- Upsized offering from $1.0 billion to $1.5 billion, indicating strong investor interest
- Lower interest rate of 5.625% compared to the 7.250% notes being redeemed
- Elimination of all guaranteed and secured notes after redemption
- Potential reduction in overall interest expenses
- Improved debt structure with extended maturity to 2031
- Increase in total debt by $1.5 billion
- Potential dilution of existing shareholders' equity
Insights
Royal Caribbean's $1.5 billion senior unsecured notes offering at
By redeeming the
The successful pricing of Royal Caribbean's debt offering amid challenging market conditions signals investor confidence in the cruise industry's recovery. The lower interest rate of
This refinancing aligns with industry trends of cruise lines optimizing their capital structures post-pandemic. The elimination of all guaranteed or secured notes could enhance Royal Caribbean's ability to access capital markets in the future. The temporary repayment of revolving credit facilities suggests prudent cash management, potentially improving the company's liquidity position in the short term.
The Company intends to use the proceeds from the sale of the Notes to redeem and/or repay certain of its indebtedness, including, but not limited to, (i) to redeem all of its outstanding
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes 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. This press release shall not constitute a notice of redemption with respect to the Company's
Special Note Regarding Forward-Looking Statements
Certain statements in this press release relating to, among other things, the offering and sale of the Notes constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding the expected timing for the closing of the offering of the Notes and the intended use of proceeds. 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
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