Royal Caribbean Cruises to price $1 billion eight-year notes in Thursday drive-by

By Paul A. Harris

Portland, Ore., Feb. 22 – Royal Caribbean Cruises Ltd. plans to price a $1 billion offering of senior notes due 2032 (Ba2) in a Thursday drive-by trailing a conference call with investors, according to market sources.

The Rule 144A and Regulation S for life eight-year notes become subject to an initial call after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and a 101% poison put.

BofA Securities Inc. is the left bookrunner.

Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. are lead bookrunning managers.

Citigroup Global Markets Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc. and Truist Securities Inc. are senior bookrunning managers.

BNP Paribas Securities Corp., Commerz Markets LLC, DNB Markets Inc., Fifth Third Securities Inc., Lloyds Securities LLC, NatWest Markets Securities Inc., Nordea, PNC Capital Markets LLC, Regions Securities LLC and SEB Securities Inc. are bookrunning managers.

CIBC World Markets Corp., DZ Financial Markets LLC, R. Seelaus & Co. Inc. and Santander US Capital Markets LLC are co-managers.

The Miami-based cruise company plans to use the proceeds plus cash on hand and/or borrowings under its revolver to redeem all of its outstanding 11 5/8% senior notes due 2027.

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