Summary
Royal Caribbean Cruises Ltd. (RCL) announced the successful completion of two concurrent private offerings on October 6, 2022, raising a total of approximately $1.984 billion in net proceeds. These funds are earmarked for the redemption of its outstanding 9.125% senior guaranteed notes due 2023 and 10.875% senior secured notes due 2023, both with a principal amount of $1.0 billion each. The offerings consisted of $1.0 billion in 9.250% senior guaranteed notes due 2029 and $1.0 billion in 8.250% senior secured notes due 2029. This strategic move aims to refinance existing debt, potentially lowering interest expenses and extending maturity profiles. The Senior Guaranteed Notes are backed by RCI Holdings LLC, while the Senior Secured Notes have guarantees from Celebrity Cruises Holdings Inc. and other subsidiaries, and are secured by specific assets including intellectual property and vessel interests, though with limitations on the secured amount.
Key Highlights
- 1RCL completed concurrent private offerings of $1 billion each in Senior Guaranteed Notes (9.250% due 2029) and Senior Secured Notes (8.250% due 2029).
- 2The company raised approximately $1.984 billion in net proceeds from these offerings.
- 3Proceeds will be used to redeem all outstanding $1.0 billion aggregate principal amount of 9.125% senior guaranteed notes due 2023 and $1.0 billion aggregate principal amount of 10.875% senior secured notes due 2023.
- 4The Senior Guaranteed Notes are guaranteed by RCI Holdings LLC.
- 5The Senior Secured Notes are guaranteed by Celebrity Cruises Holdings Inc., Celebrity Cruises Inc., and certain vessel-owning subsidiaries.
- 6The Senior Secured Notes are secured by specific assets, including intellectual property and equity interests in vessel-owning subsidiaries, but with a capped secured amount not exceeding $270 million.
- 7The new notes mature on January 15, 2029, and interest is payable semi-annually.