MIAMI - Royal Caribbean Cruises Ltd. (NYSE: NYSE:RCL), a leading global cruise company, has initiated a private offering to raise $1B through the sale of senior unsecured notes due in 2032. The company disclosed on Thursday its plans to use the proceeds from this offering, in conjunction with existing cash and potential credit facility borrowings, to redeem its 11.625% Senior Notes due in 2027.
The notes are targeted at qualified institutional buyers under Rule 144A of the Securities Act of 1933, and to certain non-U.S. investors outside the United States under Regulation S. These notes will not be registered under the Securities Act or any state securities laws, hence they cannot be offered or sold within the United States without an exemption from registration requirements.
This strategic financial maneuver is part of Royal Caribbean's broader efforts to manage its debt portfolio. The redemption of the higher-interest notes due in 2027 is anticipated to alleviate some of the financial pressures the company faces.
Royal Caribbean Group operates a fleet of 65 ships and has 8 additional ships on order as of the end of 2023. The company's portfolio includes well-known cruise brands such as Royal Caribbean International, Celebrity Cruises, and Silversea Cruises, and it holds a 50% stake in a joint venture that operates TUI Cruises and Hapag-Lloyd Cruises.
The announcement is based on a press release statement and does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities. It also does not serve as a notice of redemption for the 11.625% Senior Notes due 2027. The forward-looking statements included in the press release are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Royal Caribbean has stated that it assumes no obligation to update or revise any forward-looking statements.
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