Royal Caribbean driving by with $650 million five-year bullet notes; initial talk in low 4% area

By Paul A. Harris

Portland, Ore., June 15 – Royal Caribbean Cruises Ltd. plans to price a $650 million offering of five-year senior bullet notes (existing ratings B2/B) in a Tuesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life notes coming to yield in the low-4% area, a trader said.

Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. BofA Securities Inc., Citigroup Global Markets Inc., DNB Markets Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Truist Securities Inc., BNP Paribas Securities Corp., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Santander Investment Securities Inc., SEB and SG Americas Securities LLC are the joint bookrunners.

Academy Securities Inc., DZ Financial Markets LLC, PNC Capital Markets LLC, R. Seelaus & Co. Inc. and RF are the co-managers.

The Miami-based cruise vacation company plans to use the proceeds to redeem the Silversea Cruise Finance Inc. 7¼% senior secured notes due 2025, with the remainder of proceeds to be used for general corporate purposes.

The cruise operator returns to the high-yield primary market following a hiatus of approximately 2.5 months. It priced $1.5 billion of 5½% senior notes due April 2028, also a bullet deal, which priced on March 24.

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