Published on 2/8/2023 in the Prospect News High Yield Daily.
New Issue: Royal Caribbean Cruises sells $700 million 7¼% seven-year notes at par
By Paul A. Harris
Portland, Ore., Feb. 8 – Royal Caribbean Cruises Ltd. priced a $700 million issue of seven-year priority guarantee notes due Jan. 15, 2030 (B2/B+) at par to yield 7¼% in a Wednesday drive-by, according to market sources.
The yield printed 12.5 basis points tighter than yield talk in the 7½% area. Early whispers were in the 7¾% area.
Morgan Stanley & Co. LLC was at the left of a syndicate of bookrunners that also included 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.
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.
| Issuer: | Royal Caribbean Cruises Ltd.
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| Amount: | $700 million
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| Issue: | Priority guarantee notes
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| Maturity: | Jan. 15, 2030
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| Bookrunners: | 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.
|
| Co-managers: | 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
|
| Coupon: | 7¼%
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| Price: | Par
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| Yield: | 7¼%
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| Spread: | 352 bps
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| First call: | Dec.15, 2025 at 103.625
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| Trade date: | Feb. 8
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| Settlement date: | Feb. 13
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| Ratings: | Moody’s: B2
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| S&P: B+
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| Distribution: | Rule 144A for life and Regulation S
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| Price talk: | 7½% area
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| Marketing: | Drive-by
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