MIAMI, Nov. 20, 2017 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) today announced that it has priced an offering of senior unsecured notes in an aggregate principal amount of $800 million, consisting of two tranches. The first tranche of $300 million aggregate principal amount of senior unsecured notes due 2020 (the "2020 Notes") will bear interest at the rate of 2.650% per annum and will mature on November 28, 2020. The second tranche of $500 million aggregate principal amount of senior unsecured notes due 2028 (together with the 2020 Notes, the "Senior Unsecured Notes") will bear interest at the rate of 3.700% per annum and will mature on March 15, 2028. The Senior Unsecured Notes are expected to be issued on November 28, 2017.
The company plans to use the proceeds from the offering to repay indebtedness, including but not limited to, its $290 million unsecured term loan due 2018 and portions of its unsecured revolving credit facility due 2020 and unsecured revolving credit facility due 2022, with any remaining proceeds being used for general corporate purposes.
Merrill Lynch, Pierce, Fenner & Smith Incorporated, Morgan Stanley & Co. LLC, BNP Paribas Securities Corp., Goldman Sachs & Co. LLC, Mizuho Securities USA LLC, SMBC Nikko Securities America, Inc., BBVA Securities Inc., Citigroup Global Markets Inc., HSBC Securities (USA) Inc., J.P. Morgan Securities LLC, Scotia Capital (USA) Inc. and SG Americas Securities, LLC acted as joint book-running managers.
The offering was made pursuant to a shelf registration statement filed with the Securities and Exchange Commission. A written prospectus for the offering may be obtained if you request it by calling Merrill Lynch, Pierce, Fenner & Smith Incorporated, toll-free at 1-800-294-1322 or Morgan Stanley & Co. LLC at 1-866-718-1649.
Royal Caribbean Cruises Ltd. (NYSE: RCL) is a global cruise vacation company that owns and operates Royal Caribbean International, Celebrity Cruises and Azamara Club Cruises. The company also owns a 50 percent joint venture interest in TUI Cruises, a 49 percent interest in Pullmantur and a minority interest in SkySea Cruises. Together, these six brands operate a combined total of 49 ships. They operate diverse itineraries around the world that call on approximately 535 destinations on all seven continents.
This press release does not constitute an offer to sell or the solicitation of an offer to buy the Senior Unsecured Notes, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.
Certain statements in this release relating to, among other things, our future performance, constitute forward-looking statements. Words such as "anticipate," "believe," "could," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "driving" and similar expressions are intended to further identify any of these forward-looking statements. Forward-looking statements reflect management's current expectations but they are based on judgments and are inherently uncertain. Furthermore, they are subject to risks, uncertainties and other factors, which could cause our actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to the following: the impact of the economic environment on the demand for cruises, the impact of the economic environment on our ability to generate cash flows from operations or obtain new borrowings from the credit or capital markets in amounts sufficient to satisfy our capital expenditures, debt repayments and other financing needs, the uncertainties of conducting business internationally and expanding into new markets, changes in operating and financing costs, vacation industry competition and changes in industry capacity and overcapacity, emergency ship repairs, including the related lost revenue, the impact of ship delivery delays, ship cancellations or ship construction price increases, financial difficulties encountered by shipyards or their subcontractors and incidents or adverse publicity concerning the cruise vacation industry and the unavailability or cost of air service.
SOURCE Royal Caribbean Cruises Ltd.