Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, has announced that it has priced its concurrent private offerings of $1.0 billion aggregate principal amount of 9.125% Senior Guaranteed Notes due 2023 and $1.0 billion aggregate principal amount of 4.250% Convertible Senior Notes due 2023.
“The Senior Notes will mature on June 15, 2023. The Senior Notes will be fully and unconditionally guaranteed on a senior unsecured basis by a newly formed, direct wholly owned subsidiary of the Company that will own all the equity interests in the Company's subsidiaries that own seven of the Company's vessels,” RCCL said in a statement.
The convertible notes, which will mature on June 15, 2023, unless earlier converted, redeemed pursuant to a tax redemption or repurchased, have the initial conversion rate per $1,000 principal amount of the notes to 13.8672 shares of common stock of the Company, which is equivalent to an initial conversion price of approximately $72.11 per share, subject to adjustment in certain circumstances.
“The initial conversion price represents a conversion premium of approximately 25.00% to the last reported sale price of $57.69 per share of the Company's common stock on The New York Stock Exchange on June 4, 2020,”RCCL said.
