By Paul A. Harris
St. Louis, June 7 - Royal Caribbean Cruises Ltd. priced an upsized $900 million split-rated two-part note transaction on Wednesday, according to an informed source, who added that some high-yield accounts participated in the transaction.
The Miami-based global cruise vacation company priced a $350 million issue of 7¼% 10-year notes at a 227 basis point spread to Treasuries, tight to the Treasuries plus 230 basis points price talk.
The company also priced a $550 million tranche of 7% seven-year notes at a 210 basis point spread to Treasuries, again tight to price talk that had the seven-year notes coming 15 basis points inside of the 10-year notes.
Goldman, Sachs & Co., Barclays Capital, BNP Paribas, Morgan Stanley and Royal Bank of Scotland were joint bookrunners for the registered offering that was upsized from $700 million.
Proceeds will be used to fund the redemption of the company's approximately $544 million Liquid Yield Option Notes due 2021, which have a yield to maturity of 4 7/8%, and to repurchase 4.1 million shares of common stock in order to offset the dilutive impact of the anticipated issuance of shares upon the conversion of the company's outstanding zero-coupon convertible notes due 2021. The zeros have a yield to maturity of 4¾% and had an accreted principal amount outstanding of $129.1 million as of Monday.
| Issuer: | Royal Caribbean Cruises Ltd.
|
| Amount: | $900 million (increased from $700 million)
|
| Security description: | Senior notes
|
| Bookrunners: | Goldman, Sachs & Co., Barclays Capital, BNP Paribas, Morgan Stanley, Royal Bank of Scotland
|
| Trade date: | June 7
|
| Settlement date: | June 12
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BBB-
|
| Distribution: | SEC registered
|
|
|
| 10-year tranche
|
| Amount: | $350 million
|
| Maturity: | 2016
|
| Coupon: | 7¼%
|
| Price: | 99.69
|
| Spread: | 227 bps
|
| Price talk: | Treasuries plus 230 bps
|
|
|
| Seven-year tranche
|
| Amount: | $550 million
|
| Maturity: | 2013
|
| Coupon: | 7%
|
| Price: | 99.509
|
| Spread: | 210 bps
|
| Price talk: | 15 bps inside of the 10-year notes
|
|
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
