Royal Caribbean completes $2.5 billion bond offering

Royal Caribbean Group (NYSE: RCL) completed a $2.5 billion bond offering, issuing $1.25 billion in 4.750% senior unsecured notes due 2033 and $1.25 billion in 5.250% senior unsecured notes due 2038, according to a company statement.

The 2033 notes will mature on May 15, 2033, while the 2038 notes will mature on February 27, 2038, unless redeemed earlier. The cruise company plans to use proceeds to refinance senior notes maturing in 2026 and repay existing debt, which may include term loans.

J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets LLC served as lead book-running managers for the offering. The notes were sold under an automatic shelf registration statement filed with the Securities and Exchange Commission on February 29, 2024.

"Completing these offerings at competitive long‑term rates reinforces the depth of investor confidence in our credit and strengthens our financial foundation," said Naftali Holtz, Chief Financial Officer of Royal Caribbean Group. "Extending our maturities and reducing near‑term refinancing needs further enhances our flexibility as we execute our growth and margin initiatives."

The Miami-based company operates 69 ships through its Royal Caribbean, Celebrity Cruises, and Silversea brands, plus a 50% joint venture in TUI Cruises. The company serves more than 1,000 destinations across seven continents.

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