New Issue: Royal Caribbean's upsized $300 million 11 7/8% six-year notes priced to yield 12½%

By Paul A. Harris

St. Louis, June 30 - Royal Caribbean Cruises Ltd. priced an upsized $300 million issue of 11 7/8% six-year senior unsecured notes (Ba3/BB-/) at 97.399 to yield 12½% on Tuesday, according to an informed source.

The yield came on the wide end of 12¼% to 12½% yield talk. The issue price came slightly rich to talk that called for a discount of about 3 points.

The issue was upsized from $250 million

Morgan Stanley & Co. Inc., Banc of America Securities LLC and Goldman Sachs & Co. were joint bookrunners for the Securities and Exchange Commission-registered deal.

Proceeds will be used to repay the Miami-based cruise vacation company's revolving credit facility.

Issuer:	Royal Caribbean Cruises Ltd.
Face amount:	$300 million, increased from $250 million
Proceeds:	$292.197 million
Maturity:	July 15, 2015
Security description:	Senior unsecured notes
Bookrunners:	Morgan Stanley & Co. Inc., Banc of America Securities LLC, Goldman Sachs & Co.
Co-managers:	Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Scotia Capital, BNP Paribas Securities Corp., DnB NOR Markets, Mizuho, RBS Securities Inc., SEB
Coupon:	11 7/8%
Price:	97.399
Yield:	12½%
Spread:	952 bps
Call protection:	Make-whole call at Treasuries plus 50 bps
Trade date:	June 30
Settlement date:	July 6
Ratings:	Moody's: Ba3
	Standard & Poor's: BB-
Distribution:	SEC registered
Price talk:	12¼% to 12½% with about 3 points of OID

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