Summary
Royal Caribbean Cruises Ltd. (RCL) filed an 8-K on November 7, 2012, to report the completion of a significant debt offering. The company successfully issued $650 million in aggregate principal amount of 5.250% Senior Notes due November 15, 2022. This issuance, governed by a supplemented indenture, registered under a prior shelf registration, adds to the company's outstanding unsecured and unsubordinated debt. The net proceeds from this offering, totaling approximately $638.5 million after discounts and expenses, are earmarked for the repayment of outstanding indebtedness under certain unsecured debt facilities. This strategic move aims to manage the company's debt structure and potentially refinance existing obligations.
Key Highlights
- 1RCL completed an offering of $650 million in 5.250% Senior Notes due November 15, 2022.
- 2The net proceeds from the offering amounted to approximately $638.5 million after accounting for underwriters' discounts and expenses.
- 3The company intends to use the net proceeds to repay existing indebtedness under certain unsecured debt facilities.
- 4The Senior Notes are unsecured and unsubordinated, ranking equally with other unsecured and unsubordinated debt of the company.
- 5The Indenture includes provisions for redemption at the company's option under specific conditions and a mandatory purchase offer upon a change of control triggering event.
- 6Customary events of default are outlined in the Indenture, with provisions for acceleration of principal and interest under certain circumstances.