Royal Caribbean Cruises driving by with $700 million seven-year notes; initial talk 7 3/8% area

By Paul A. Harris

Portland, Ore., Feb. 8 – Royal Caribbean Cruises Ltd. plans to price a $700 million offering of priority guarantee notes due Jan. 15, 2030 (B3/B+) in a Wednesday drive-by, according to market sources.

The deal is heard to be multiple-times oversubscribed and is in the market with initial guidance in the 7 3/8% area, a sellside source said.

Earlier whispers were in the 7¾% area, the source said.

Morgan Stanley & Co. LLC, BofA Securities Inc., Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Truist Securities Inc., BNP Paribas Securities Corp., DNB Markets Inc., Fifth Third Securities Inc., Goldman Sachs & Co. LLC, Mizuho Securities USA Inc., Scotia Capital (USA) Inc., SG Americas Securities LLC and SMBC Nikko Securities America Inc. are bookrunners.

CIBC World Markets Corp., Commerz Markets LLC, DZ Financial Markets LLC, NORD, PNC Capital Markets LLC, R. Seelaus & Co. Inc., Regions Securities LLC, Santander Investment Securities Inc. and SEB are co-managers.

The Rule 144A for life and Regulation S seven-year notes come with three years of call protection.

The Miami-based cruise operator plans to use the proceeds to repay principal payments on debt maturing in 2023 and/or 2024.

Upon closing of this offering, the company intends to terminate its $700 million liquidity facility and the remaining commitments under its backstop facility.

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