Summary
Royal Caribbean Cruises Ltd. (RCL) announced on May 13, 2020, that it has priced a significant private offering of senior secured notes to bolster its liquidity. The company is issuing $1.0 billion in 10.875% Senior Secured Notes due 2023 and $2.32 billion in 11.500% Senior Secured Notes due 2025. These offerings are a key move to manage its debt obligations during a challenging period for the travel industry. The primary use of the proceeds from these notes will be to repay a $2.35 billion senior secured term loan facility that was entered into in late March 2020. The remaining funds are designated for general corporate purposes, potentially including further debt repayment. This strategic refinancing aims to extend the company's debt maturity profile and provide greater financial flexibility.
Key Highlights
- 1Priced a private offering of $1.0 billion in 10.875% Senior Secured Notes due 2023.
- 2Priced a private offering of $2.32 billion in 11.500% Senior Secured Notes due 2025.
- 3Total notes offering aggregate principal amount is $3.32 billion.
- 4Expected issuance date for the Notes is on or around May 19, 2020.
- 5Proceeds will primarily be used to repay a $2.35 billion senior secured term loan from March 23, 2020.
- 6Remaining proceeds will be used for general corporate purposes, which may include additional debt repayment.
- 7This action demonstrates the company's efforts to manage its financial obligations and liquidity.