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 launches private offering of $3.3bn senior notes

Royal Caribbean Cruises Ltd. commenced a private offering of senior secured notes due 2023 and 2025 for a total of $3.3bn.

$2.45bn iiquidity currently

Issuing further debt had been anticipated among a host of actions to boost liquidity during the COVID-29 era. The company currently has $2.45bn in liquidity.

Proceeds to repay 364-day term loan

RCL expects to use the net proceeds of the notes offering to repay its $2.35bn, 364-day senior secured term loan agreement with Morgan Stanley Senior Funding as the administrative agent and collateral agent and the other lenders in the March 23 facility. The remainder of the net proceeds would go to general corporate purposes, which may include additional debt repayments.

Secured by 28 ships and intellectual property

The notes and the related guarantees will be secured by 28 ships and material intellectual property. The offering is being made to qualified institutional buyers outside the US.

As of April 30, RCL had liquidity of approximately $2.3bn in the form of cash and cash equivalents. On May 4, the company increased its 364-day senior secured loan agreement and drew $150m, further enhancing its liquidity profile.

According to Wells Fargo Securities, that total $2.45bn would be adequate for six to 6.5 months in the current 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.