8-K

ROYAL CARIBBEAN CRUISES LTD 8-K Report (Feb 1, 2001)

Filed February 1, 2001For Securities:RCL

Summary

Royal Caribbean Cruises Ltd. (RCL) filed an 8-K on February 1, 2001, detailing two significant financial events and an operational update. The company announced and subsequently priced a substantial public offering totaling $1 billion in debt securities: $500 million in 8.75% Senior Notes due 2011 and $500 million in 20-year Liquid Yield Option (LYONs) convertible notes. These offerings, managed by prominent investment banks, are intended to fund general corporate purposes, including capital expenditures, signaling a proactive approach to financing growth and operations. In addition to the financing activities, Celebrity Cruises, a subsidiary of RCL, announced that its ship 'Millennium' would undergo a two-week dry dock to repair an underperforming electric motor affecting its propulsion system. This repair necessitates the cancellation of two Caribbean cruises in April 2001, with affected guests offered refunds and future discounts. While the motor issue does not impact guest safety, it reduces the ship's maximum speed and could affect port arrival times. The company expects repair costs to be covered under warranty, and is reviewing lost revenue with the manufacturer. This operational adjustment highlights a commitment to maintaining ship performance and guest satisfaction.

Key Highlights

  • 1Royal Caribbean Cruises Ltd. priced a $500 million offering of 8.75% Senior Notes due 2011.
  • 2The company also priced a $500 million offering of 20-year Liquid Yield Option (LYONs) convertible notes.
  • 3Net proceeds from both offerings will be used for general corporate purposes, including capital expenditures.
  • 4Celebrity Cruises' ship 'Millennium' will enter a two-week dry dock for repair of an underperforming electric motor in its propulsion system.
  • 5The dry dock will cause the cancellation of two one-week Caribbean cruises in April 2001.
  • 6Affected guests will receive full refunds and a 50% discount on a future cruise.
  • 7Repair costs for the 'Millennium' are expected to be covered under normal warranty provisions.

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