Published on 3/24/2021 in the Prospect News High Yield Daily.
New Issue: Royal Caribbean prices upsized $1.5 billion seven-year bullet at par to yield 5½%
By Paul A. Harris
Portland, Ore., March 24 – Royal Caribbean Cruises Ltd. priced an upsized $1.5 billion issue of seven-year senior bullet notes (B2/B) at par to yield 5½% in a Wednesday drive-by, according to market sources.
The issue size increased from $1.25 billion.
The yield printed at the tight end of the 5½% to 5¾% yield talk and well inside of initial guidance in the high 5% to 6% area.
BofA Securities Inc. was the left bookrunner.
Senior joint bookrunners were Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., DNB, SMB, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Truist Securities Inc. Junior joint bookrunners were Mizuho Securities USA Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., R. Seelaus & Co. Inc., Santander Investment Securities Inc., PNC Capital Markets LLC and BNP Paribas Securities Corp.
The Miami-based cruise vacation company plans to use the proceeds to make principal payments on debt maturing or required to be paid in 2021 and 2022, with the remaining proceeds to be used for general corporate purposes.
| Issuer: | Royal Caribbean Cruises Ltd.
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| Amount: | $1.5 billion, increased from $1.25 billion
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| Maturity: | April 1, 2028
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| Securities: | Senior notes
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| Left bookrunner: | BofA Securities Inc.
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| Senior joint bookrunners: | Goldman Sachs & Co. LLC, Citigroup Global Markets Inc., Scotia Capital (USA) Inc., DNB, SMB, J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and Truist Securities Inc.
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| Junior joint bookrunners: | Mizuho Securities USA Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., R. Seelaus & Co. Inc., Santander Investment Securities Inc., PNC Capital Markets LLC and BNP Paribas Securities Corp.
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| Co-managers: | ICBC Standard Bank plc, SEB, Regions Securities LLC, SG Americas Securities LLC, CIBC World Markets Corp., IMI, Academy Securities Inc. and DZ Financial Markets LLC
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| Coupon: | 5½%
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| Price: | Par
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| Yield: | 5½%
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| Call protection: | Callable after Oct. 1, 2027 at par, otherwise non-callable
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| Trade date: | March 24
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| Settlement date: | March 29
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5½% to 5¾%
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| Marketing: | Drive-by
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