Royal Caribbean Completes $1.5 Billion Senior Unsecured Notes Offering

Royal Caribbean Cruises Ltd. has completed a $1.5 billion senior unsecured notes offering due 2036. The proceeds will be used to finance the upcoming delivery of Celebrity Xcel and to redeem or refinance existing indebtedness. BofA Securities, Goldman Sachs, and Morgan Stanley acted as lead book-running managers. The company intends to use the net proceeds to finance the upcoming delivery of Celebrity Xcel in lieu of utilizing its existing committed export credit agency facility.

Royal Caribbean Cruises Ltd. (NYSE: RCL) has successfully completed its registered public offering of $1.5 billion in senior unsecured notes due in 2036. The offering, which was led by BofA Securities, Goldman Sachs, and Morgan Stanley, is a significant financial milestone for the cruise line Royal Caribbean Group announces completion of $1.5 billion offering of senior unsecured notes^[1].

The company plans to utilize the net proceeds from the sale of these notes to finance the upcoming delivery of the Celebrity Xcel cruise ship. This move is part of Royal Caribbean's strategy to optimize its financing structure and address upcoming debt maturities. The notes, which carry a 5.375% interest rate and mature on January 15, 2036, unless redeemed or repurchased earlier, were offered and sold pursuant to an automatic shelf registration statement filed with the Securities and Exchange Commission on February 29, 2024 Royal Caribbean Group announces completion of $1.5 billion offering of senior unsecured notes^[1].

Naftali Holtz, the Chief Financial Officer of Royal Caribbean Group, commented on the significance of this transaction, stating, "As our relaunch into the investment grade market, this transaction serves as a testament to the strength of both the Company and its balance sheet." He added, "This offering demonstrates our financial flexibility by allowing us to more optimally finance the upcoming delivery of Celebrity Xcel and address certain upcoming debt maturities" Royal Caribbean Group announces completion of $1.5 billion offering of senior unsecured notes^[1].

The completion of this offering is a strategic move for Royal Caribbean, highlighting its financial flexibility and commitment to investing in its fleet. The company's ability to secure such a large offering at a time when many industries are facing economic challenges underscores the strength of its balance sheet and market position Royal Caribbean Group announces completion of $1.5 billion offering of senior unsecured notes^[1].