Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said it has closed two private offerings of senior secured notes totalling at $3.23 billion.
The first offering was of $1.0 billion aggregate principal amount of 10.875% Senior Secured Notes due 2023 and the second one of $2.32 billion aggregate principal amount of 11.500% Senior Secured Notes due 2025.
The 2023 Notes will mature on June 1, 2023. The 2025 Notes will mature on June 1, 2025 and are redeemable at the Company's option beginning June 1, 2022.
“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,” the company said in a statement.
RCCL said it had used 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. It expects to use the remainder of the net proceeds for general corporate purposes, which may include repayment of additional indebtedness.
