by Sarah Kuta
Last updated: 12:00 PM ET, Fri February 23, 2024
WHY IT RATES: One of the largest cruise companies in the world is refinancing some of its debts.—Sarah Kuta, TravelPulse writer
Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has priced its private offering of $1.25 billion aggregate principal amount of 6.25% senior unsecured notes due 2032 (the "Notes"). The aggregate principal amount of Notes to be issued was increased to $1.25 billion. The Notes will mature on March 15, 2032. The Notes are expected to be issued on or around March 7, 2024, subject to customary closing conditions.
The Company intends to use the proceeds from the sale of the Notes, together with cash on hand and/or borrowings under the Company's revolving credit facilities, to redeem all of the outstanding 11.625% Senior Notes due 2027 (including to pay fees and expenses in connection with such redemption).
The Notes are being offered only to persons reasonably believed to be qualified institutional buyers in reliance on Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States, only to certain non-U.S. investors pursuant to Regulation S. The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state laws.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. This press release shall not constitute a notice of redemption with respect to the 11.625% Senior Notes due 2027. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.
Source: Royal Caribbean Group press release
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