Published on 2/22/2024 in the Prospect News High Yield Daily.
New Issue: Royal Caribbean prices upsized $1.25 billion eight-year notes at par to yield 6¼%
By Paul A. Harris
Portland, Ore., Feb. 22 – Royal Caribbean Cruises Ltd. priced an upsized $1.25 billion issue of eight-year senior notes (Ba2/BB+) at par to yield 6¼% in a Thursday drive-by, according to market sources.
The issue size increased from $1 billion.
The yield printed at the tight end of yield talk.
BofA Securities Inc. was the left bookrunner. Lead bookrunners were Goldman Sachs & Co. LLC and Mizuho Securities USA Inc. Senior bookrunners were 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. Additional bookrunners were 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.
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.
| Issuer: | Royal Caribbean Cruises Ltd.
|
| Amount: | $1.25 billion
|
| Issue: | Senior notes
|
| Maturity: | March 15, 2032
|
| Left bookrunner: | BofA Securities Inc.
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| Lead bookrunners: | Goldman Sachs & Co. LLC and Mizuho Securities USA Inc.
|
| Senior bookrunners: | 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.
|
| Bookrunners: | 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.
|
| Co-managers: | CIBC World Markets Corp., DZ Financial Markets LLC, R. Seelaus & Co. Inc. and Santander US Capital Markets LLC
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| Coupon: | 6¼%
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| Price: | Par
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| Yield: | 6¼%
|
| First call: | March 15, 2027 at 103.125
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| Trade date: | Feb. 22
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| Settlement date: | March 7
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| Ratings: | Moody’s: Ba2
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| S&P: BB+
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6 3/8% area
|
| Marketing: | Drive-by
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