By Abigail W. Adams
Portland, Me., Aug. 2 – Royal Caribbean Group priced an upsized $1 billion offering of three-year convertible notes after the market close on Monday at the midpoint of talk with a coupon of 6% and an initial conversion premium of 40%, according to a company news release and a market source.
Price talk was for a coupon of 5.75% to 6.25% and an initial conversion premium of 37.5% to 42.5%.
Morgan Stanley & Co. LLC was lead left bookrunner for the Rule 144A offering, which carries an upsized greenshoe of $150 million.
The initial size of the offering was $900 million with a greenshoe of $135 million.
The notes are non-callable.
They will be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used to repurchase $350 million principal amount of the company’s 2.875% convertible notes due Nov. 15, 2023 and $800 million principal amount of the 4.25% convertible notes due June 15, 2023 in privately negotiated transactions.
Royal Caribbean is a Miami-based cruise line operator.
| Issuer: | Royal Caribbean Group
|
| Amount: | $1 billion
|
| Greenshoe: | $150 million
|
| Issue: | Convertible senior notes
|
| Maturity: | Aug. 15, 2025
|
| Bookrunner: | Morgan Stanley & Co. LLC
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Conversion premium: | 40%
|
| Conversion price: | $50.11
|
| Conversion rate: | 19.9577
|
| Call options: | None
|
| Pricing date: | Aug. 1
|
| Settlement date: | Aug. 5
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 5.75% to 6.25% and initial conversion premium of 37.5% to 42.5%
|
| Stock symbol: | NYSE: RCL
|
| Stock price: | $35.79 at market close Aug. 1
|
| Market capitalization: | $8.93 billion
|
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