Royal Caribbean Cruises Ltd. (NYSE: RCL) has successfully completed a private offering of $1.5 billion aggregate principal amount of 5.625% senior notes due 2031. The company plans to use the proceeds to redeem and/or repay certain existing indebtedness, including redeeming all outstanding $700 million aggregate principal amount of its 7.250% senior notes due 2030, and repaying in full all outstanding $232 million aggregate principal amount of its Silver Dawn finance lease.
The offering was made to qualified institutional buyers and non-U.S. persons in reliance on Rule 144A under the Securities Act of 1933 and Regulation S, respectively. The notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption.
The completion of this offering marks a strategic move by Royal Caribbean to manage its debt structure and potentially reduce interest expenses. This development could positively impact the company's financial position and cash flow in the future. Today the company's shares have moved -2.5% to a price of $178.31. If you want to know more, read the company's complete 8-K report here.
