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RCL launches private notes/convertible notes offerings totaling up to $2bn

In continued actions to boost liquidity, Royal Caribbean Cruises Ltd. commenced a private offering of up to $1bn in senior guaranteed notes and a concurrent private offering of up to $1bn in senior convertible notes.

Due 2023

Both would be due 2023, and the closing of each offering is not contingent upon the other.

Guarantor of senior unsecured notes

The senior notes will be fully guaranteed on a senior unsecured basis by a newly formed, direct wholly owned subsidiary of the company. This subsidiary will own all the equity interests in the RCL subsidiaries that own seven ships with a total book value of $7.7bn.

The convertible notes will not be guaranteed by any of the company's subsidiaries.

Notes convertible to cash or shares

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

RCL expects to use the combined net proceeds from the offerings for general corporate purposes, which may include repaying debt.

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