Seatrade Cruise News is part of the Informa Markets Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Royal Caribbean raises $1bn in stock, convertible notes offerings

Article-Royal Caribbean raises $1bn in stock, convertible notes offerings

CRUISE Royal Caribbean Group logo.jpg
Royal Caribbean Group closed its underwritten public offering of 8.3m shares of common stock at $60 per share, or a total of $500m.

On Friday, RCL shares closed at $58.83, down 55 cents.

The company also closed its offering of $500m in 2.875% of convertible senior notes due 2023. Net proceeds were approximately $487.2m, after fees, commissions and expenses.

Stock underwriters

Morgan Stanley and BofA Securities acted as joint lead book-running managers for the stock offering. Citigroup, DNB Markets, Goldman Sachs, HSBC, JP Morgan and SEB also acted as book-running managers.

Royal Caribbean expects to use the net proceeds from the offering for general corporate purposes.

Convertible notes

The convertible senior notes will mature on Nov. 15, 2023, unless earlier converted, redeemed pursuant to a tax redemption or repurchased.

Royal Caribbean said a portion of the net proceeds from the offering will go toward repaying its 2.65% senior notes due 2020, with the remainder to be used for general corporate purposes.

William Blair's liquidity assessment

As earlier reported, brokerage William Blair estimated Royal Caribbean will have adequate liquidity following the stock and notes offerings — figuring in monthly cash burn and a 50% potential refund scenario for deposits for canceled voyages — to sustain operations for at least eight months in a zero-revenue environment.

Hide comments


  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.