Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said that it has commenced a private offering of senior secured notes due 2023 and 2025 for an aggregate principal amount of $3.3 billion.
“The Notes and the related guarantees will be secured by 28 of the company's vessels and material intellectual property of the company. The obligations under the Notes and the related guarantees will be secured by the collateral in an amount not to exceed permitted capacity under the company's existing indebtedness,” RCCL said in a statement.
RCCL said it expects to use the net proceeds from the offering of the notes to repay its $2.35 billion 364-day senior secured term loan agreement with Morgan Stanley Senior Funding, Inc., as the administrative agent and collateral agent and the other lenders party thereto entered into on March 23, 2020.
“The Company expects to use the remainder net proceeds for general corporate purposes, which may include repayment of additional indebtedness,” it concluded.
