Royal Caribbean driving by with $1 billion five-year bullet notes; initial talk mid-5% area

By Paul A. Harris

Portland, Ore., Aug. 11 – Royal Caribbean Cruises Ltd. plans to price a $1 billion offering of five-year senior bullet notes (existing ratings B2/B) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the Rule 144A and Regulation S for life deal coming to yield in the mid-5% area, a trader said.

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

Academy Securities Inc., CMZ, DZ Financial Markets LLC, PNC Capital Markets LLC, Regions Securities LLC and Standard Chartered Bank are the co-managers.

The Miami-based cruise holding company plans to use the proceeds for general corporate purposes, including replenishment of capital as a result of the up to 40% redemption of its 11½% senior secured notes due 2025, and to refinance future debt maturities.

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