Summary
Royal Caribbean Cruises Ltd. (RCL) announced on May 14, 2001, its intention to market a public offering of $300 million in 20-year zero-coupon convertible senior notes, with an over-allotment option for an additional $45 million. The notes are designed to be convertible into RCL common stock under specific market price conditions. Banc of America Securities LLC is the lead underwriter for this offering. Subsequent to this announcement, on May 15, 2001, the company announced the pricing of this offering. The notes will mature with a yield of 4.75 percent and will be convertible into 15.6675 shares of RCL common stock per note. The net proceeds from this debt issuance are intended for general corporate purposes, including capital expenditures. This offering was made under a previously filed and effective shelf registration statement, and the company anticipates it will be accretive to near-term earnings.
Key Highlights
- 1Announcement of a $300 million public offering of 20-year zero-coupon convertible senior notes.
- 2An over-allotment option of up to $45 million in principal amount of notes was granted to the underwriter.
- 3The notes are convertible into Royal Caribbean common stock at specified market price thresholds.
- 4The offering is led by Banc of America Securities LLC.
- 5Net proceeds will be used for general corporate purposes, including capital expenditures.
- 6The company expects the transaction to be accretive to earnings in the near-term future.
- 7The offering was priced with a yield to maturity of 4.75 percent and a conversion rate of 15.6675 shares per note.