Royal Caribbean completes $1.5 billion debt offering

Royal Caribbean Cruises Ltd. (NYSE: RCL) completed a $1.5 billion registered public offering of 5.375% senior unsecured notes due 2036, the company announced October 1.

The notes will mature on January 15, 2036, unless earlier redeemed or repurchased. The company plans to use net proceeds to finance the upcoming delivery of Celebrity Xcel instead of utilizing its existing committed export credit agency facility. Remaining proceeds will be used to redeem, refinance or repurchase existing debt, including amounts under revolving credit facilities.

BofA Securities, Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC served as lead book-running managers for the offering. The notes were sold under an automatic shelf registration statement filed with the Securities and Exchange Commission on February 29, 2024.

"As our relaunch into the investment grade market, this transaction serves as a testament to the strength of both the Company and its balance sheet," said Naftali Holtz, Chief Financial Officer of Royal Caribbean Group. "This offering demonstrates our financial flexibility by allowing us to more optimally finance the upcoming delivery of Celebrity Xcel and address certain upcoming debt maturities."

The cruise operator described this as its reentry into the investment grade debt market, according to the press release statement.

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