Royal Caribbean greenshoe lifts 6% convertibles to $1.15 billion

By Wendy Van Sickle

Columbus, Ohio, Aug. 8 – Underwriters for Royal Caribbean Group’s 6% convertible notes due Aug. 15, 2025 fully exercised their $150 million greenshoe, enlarging the total deal size to $1.15 billion according to an 8-K filing with the Securities and Exchange Commission.

The company priced an upsized $1 billion of the convertibles after the market close on Aug. 1 at the midpoint of talk with an initial conversion premium of 40%, as previously reported.

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.

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.

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