New Issue: Royal Caribbean prices $1 billion 5½% five-year bullet notes at par

By Paul A. Harris

Portland, Ore., Aug. 11 – Royal Caribbean Cruises Ltd. priced a $1 billion issue of five-year senior bullet notes (B2/B) at par to yield 5½% in a Wednesday drive-by, according to market sources.

The yield printed in the middle of yield talk in the 5½% area. Initial guidance was in the mid-5% area.

Demand was heard to be around $1.2 billion, a trader said.

Left bookrunner Morgan Stanley & Co. LLC will bill and deliver. Joint bookrunners were 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.

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.

Issuer:	Royal Caribbean Cruises Ltd.
Amount:	$1 billion
Maturity:	Aug. 31, 2026
Securities:	Senior notes
Left bookrunner:	Morgan Stanley & Co. LLC (bill and deliver)
Joint bookrunners:	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.
Co-managers:	Academy Securities Inc., CMZ, DZ Financial Markets LLC, PNC Capital Markets LLC, Regions Securities LLC and Standard Chartered Bank
Coupon:	5½%
Price:	Par
Yield:	5½%
Spread:	470 bps
Call protection:	Non-callable
Trade date:	Aug. 11
Settlement date:	Aug. 19
Ratings:	Moody's: B2
	S&P: B
Distribution:	Rule 144A and Regulation S for life
Price talk:	5½% area
Marketing:	Drive-by

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