Royal Caribbean Group Sets $1.25 Billion Debt Refinancing Effort with New Senior Unsecured Notes Offering

Royal Caribbean Group is taking strategic financial steps by announcing the pricing of a private offering of $1.25 billion in aggregate principal amount of 6.25% senior unsecured notes, set to mature in 2032. This move represents an increase in the originally anticipated aggregate principal amount, underscoring the company’s proactive approach to managing its financial structure. The notes, due March 15, 2032, are slated for issuance around March 7, 2024, pending standard closing conditions.

This refinancing initiative is aimed at redeeming all outstanding 11.625% Senior Notes due 2027, leveraging the proceeds from the new offering in combination with available cash and potential borrowings under the company’s revolving credit facilities. This strategic financial maneuver is designed to optimize the company’s debt portfolio, reducing interest costs and extending maturity profiles.

The offering targets qualified institutional buyers, relying on Rule 144A under the Securities Act of 1933, as amended, and will also be available to certain non-U.S. investors outside of the United States pursuant to Regulation S. It’s important to note that the notes will not be registered under the Securities Act or any state securities laws, thereby limiting their sale within the United States to those who qualify for an exemption from registration requirements.

Royal Caribbean Group’s announcement emphasizes that this press release does not constitute an offer to sell or a solicitation of an offer to buy the notes or any other securities. Furthermore, it is not a notice of redemption for the 11.625% Senior Notes due 2027. Issued in compliance with Rule 135c under the Securities Act, this announcement marks a significant step in the company’s ongoing efforts to strengthen its financial position and ensure long-term operational success.