Royal Caribbean Completes $827M Convertible Notes Exchange

By Bobby Samwell • Wednesday, August 21 06:01 • Permanent Link

Royal Caribbean Cruises Ltd. (NYSE: RCL) has announced the successful completion of privately negotiated exchange transactions with certain holders of its 6.000% convertible senior notes due 2025. In these transactions, the holders exchanged approximately $827 million in aggregate principal amount of the 2025 notes for approximately 11.4 million shares of the company’s common stock and approximately $827 million in cash, representing the par value of the 2025 notes exchanged, plus accrued and unpaid interest thereon.

Following the completion of the exchange transactions, about $323 million in aggregate principal amount of the 2025 notes remain outstanding. Naftali Holtz, Chief Financial Officer of Royal Caribbean Group, noted that the private exchange of notes allows the company to address a 2025 debt maturity while also reducing outstanding shares and share equivalents on a fully diluted basis by 5.1 million shares.

The company funded the cash portion of the exchange consideration with borrowings under its revolving credit facilities. The transaction is not expected to have a material impact on 2024 adjusted earnings per share given the timing of weighted average shares outstanding on a fully diluted basis.

Perella Weinberg Partners LP, J. Wood Capital Advisors LLC, and Truist Securities, Inc. served as advisors on this transaction. Today the company's shares have moved -1.6% to a price of $158.84. For the full picture, make sure to review Royal Caribbean Cruises's 8-K report.

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