Royal Caribbean begins exchanges with convertible notes holders

The notes to be exchanged represent approximately $731m. Following the exchange, approximately $419m in 2025 notes will remain outstanding.

Five-day averaging period

The exchange consideration will be based on the volume-weighted average price per share of RCL during a five-trading day averaging period commencing Aug. 6.

The cash portion of the exchange consideration will represent the par amount of the 2025 notes being repurchased, and the actual number of shares comprising the exchange consideration will be determined after the averaging period.

Royal Caribbean intends to fund the cash portion of the exchange consideration with borrowings under its revolving credit facilities, with the remaining amounts due settled in shares.

The exchange transactions are expected to close Aug. 16.

RCL closed at $139.77, up 92 cents, on Monday. Shares were up more than 3% in pre-market open trading Tuesday.