Royal Caribbean talks $500 million three-year convertibles to yield 3.375%-3.875%, up 25%-30%

By Abigail W. Adams

Portland, Me., Oct. 13 – Royal Caribbean Cruises Ltd. plans to price $500 million of three-year convertible notes after the market close on Tuesday with price talk for a coupon of 3.375% to 3.875% and an initial conversion premium of 25% to 30%, according to a market source.

Morgan Stanley & Co. LLC (lead left) and BofA Securities Inc. are active bookrunners for the Rule 144A deal, which carries a greenshoe of $75 million.

The notes are non-callable.

Concurrently with the convertible notes offering, Royal Caribbean plans to price a secondary offering of $500 million shares. The secondary offering carries a $75 million greenshoe.

Proceeds will be used to repay the company’s 2.65% senior notes due 2020 and for general corporate purposes.

Royal Caribbean is a Miami-based cruise line operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.