Summary
Royal Caribbean Cruises Ltd. (RCL) has announced a significant financing transaction through the issuance of $1.5 billion in 5.375% Senior Notes due 2036. This offering, made under an underwriting agreement with BofA Securities, Goldman Sachs, and Morgan Stanley, is expected to close on October 1, 2025. The primary use of proceeds is to fund the upcoming delivery of the new vessel, Celebrity Xcel, which will replace the utilization of existing export credit agency facilities. Additionally, the company intends to use the remaining net proceeds to address its existing debt obligations, including potential redemptions, refinancings, or repurchases of amounts outstanding under its revolving credit facilities. This strategic move suggests a proactive approach to managing its capital structure and funding growth initiatives.
Key Highlights
- 1RCL is raising $1.5 billion through the issuance of 5.375% Senior Notes due 2036.
- 2The offering is being conducted as an underwritten public offering.
- 3Key underwriters include BofA Securities, Goldman Sachs, and Morgan Stanley.
- 4The closing of the offering is anticipated on October 1, 2025, subject to customary conditions.
- 5Net proceeds will be used to finance the delivery of the new Celebrity Xcel vessel.
- 6Remaining proceeds will be allocated towards redeeming, refinancing, or repurchasing existing indebtedness, including revolving credit facilities.
- 7This action indicates proactive capital management and funding for fleet expansion.