Royal Caribbean raises $1.25B in notes offering to cut floating-rate debt
What's the deal? Royal Caribbean GroupDealroom has a profile for this one. Try Dealroom → (NYSE: RCL) has completed a registered public offering of $1.25 billion in senior unsecured notes due January 20, 2034. The notes carry a fixed coupon of 5.550% and may be redeemed or repurchased before maturity.
Where's the money going? The cruise operator intends to use net proceeds to repay part of its outstanding borrowings under floating rate term loan facilities, with any remainder going to repay or refinance other existing debt.
Who ran it? BNP Paribas Securities, BofA SecuritiesDealroom has a profile for this one. Try Dealroom →, and Citigroup Global MarketsDealroom has a profile for this one. Try Dealroom → acted as lead book-running managers. The notes were sold under an automatic shelf registration statement filed with the Securities and Exchange Commission on February 29, 2024.
Why it stands out: At $1.25 billion, the raise ranks in the 90th percentile of all US post-IPO debt deals on record, a sample of 4,823 rounds. It swaps floating-rate exposure for a fixed 5.550% coupon locked in through 2034.
The signal: The move fits a pattern of Royal Caribbean tapping bond markets to term out its debt, following a $2.5 billion notes offering earlier this year. As cruise operators rebuild balance sheets, refinancing floating-rate loans into fixed-rate paper offers predictability against a shifting rate backdrop.
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