By Paul A. Harris
Portland, Ore., June 4 – Royal Caribbean Cruises Ltd. priced a $1 billion issue of three-year senior guaranteed bullet notes (Ba2/BB) at par to yield 9 1/8% in a Thursday drive-by, according to market sources.
Bookrunners were J.P. Morgan Securities LLC, DNB Markets, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and SG CIB.
The deal, which priced through the 9¼% to 9½% yield talk, traded as high as 103¼ bid in the secondary market, before falling back to 102 bid, 102¼ offered, traders said.
Initial guidance had the notes coming to yield in the high 9% area to 10%.
The Miami-based cruise vacation company plans to use the proceeds for general corporate purposes, which may include debt repayment.
| Issuer: | Royal Caribbean Cruises Ltd.
|
| Amount: | $1 billion
|
| Maturity: | June 15, 2023
|
| Securities: | Senior guaranteed notes
|
| Bookrunners: | J.P. Morgan Securities LLC, DNB Markets, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc. and SG CIB
|
| Coupon: | 9 1/8%
|
| Price: | Par
|
| Yield: | 9 1/8%
|
| Spread: | 888 bps
|
| Call protection: | Non-callable
|
| Trade date: | June 4
|
| Settlement date: | June 9
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 9¼% to 9½%
|
| Marketing: | Drive-by
|
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