Published on 6/15/2021 in the Prospect News High Yield Daily.
New Issue: Royal Caribbean prices $650 million 4¼% five-year bullet notes at par
By Paul A. Harris
Portland, Ore., June 15 – Royal Caribbean Cruises Ltd. priced a $650 million issue of five-year senior bullet notes (B2/B) at par to yield 4¼% in a Tuesday drive-by, according to market sources.
The yield printed in the middle of yield talk in the 4¼% area. Initial guidance was in the low-4% area.
Left lead bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were 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.
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 the proceeds to be used for general corporate purposes.
The cruise operator returned 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.
| Issuer: | Royal Caribbean Cruises Ltd.
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| Amount: | $650 million
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| Maturity: | June 1, 2026
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| Securities: | Senior notes
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| Left bookrunner: | Morgan Stanley & Co. LLC (bill and deliver)
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| Joint bookrunners: | 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
|
| Co-managers: | Academy Securities Inc., DZ Financial Markets LLC, PNC Capital Markets LLC, R. Seelaus & Co. Inc. and Regions Securities LLC
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| Coupon: | 4¼%
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| Price: | Par
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| Yield: | 4¼%
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| Spread: | 346 bps
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| Call protection: | Non-callable
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| Trade date: | June 15
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| Settlement date: | June 24
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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: | 4¼% area
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