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Royal Caribbean Group looks to raise $1bn in stock, senior convertible notes offerings

Royal Caribbean Group commenced an underwritten public offering of $500m shares of common stock and a private offering of senior convertible notes for an aggregate principal amount of up to $500m.

Option for underwriters to buy more

For the stock offering, the company intends to grant the underwriters an option to purchase up to $75m in additional shares.

Morgan Stanley and BofA Securities are acting as joint lead book-running managers. Citigroup, DNB Markets, Goldman Sachs, HSBC, JP Morgan and SEB are also acting as book-running managers.

Net proceeds are expected to be used for general corporate purposes.

Senior convertible notes due 2023

For the senior convertible notes, due 2023, Royal Caribbean Group also intends to grant the initial purchasers an option to buy up to an additional $75m in convertible notes.

The notes will be convertible at the holder's option in certain circumstances. Upon conversion, Royal Caribbean Group may satisfy its conversion obligation by paying or delivering, at its election, cash, shares of common stock or a combination of both.

The company expects to use a portion of the net proceeds to repay its 2.65% senior notes due 2020, with the remainder to be used for general corporate purposes.

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