Royal Caribbean Cruises Ltd. (RCCL), the world’s second largest cruise shipping group, said that it has priced its private offering of $1.0 billion aggregate principal amount of 10.875% Senior Secured Notes due 2023 and $2.32 billion aggregate principal amount of 11.500% Senior Secured Notes due 2025.
“The 2023 Notes will mature on June 1, 2023. The 2025 Notes will mature on June 1, 2025 and are redeemable at the company's option beginning June 1, 2022. The Notes are expected to be issued on or around May 19, 2020, RCCL said in a statement.
The notes and the related guarantees would be secured by 28 of the company's vessels and material intellectual property of the company.
“The obligations under the Notes and the related guarantees will be secured by the collateral in an amount not to exceed permitted capacity under the Company's existing indebtedness,” RCCL said.
The company said it expects to use the net proceeds from the offering of the Notes to repay its $2.35 billion 364-day senior secured term loan agreement with Morgan Stanley Senior Funding, Inc., while the remainder of the net proceeds would be used for general corporate purposes, which may include repayment of additional indebtedness.