The 2023 notes will mature on June 1, 2023, while the 2025 notes will mature on June 1, 2025, and are redeemable at the company's option beginning June 1, 2022.
RCL is issuing debt to boost liquidity during the COVID-19 crisis. Until this offering, the company had $2.45bn in liquidity.
The notes are expected to be issued on or around May 19.
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.