Royal Caribbean has commenced a private offering of senior guaranteed notes, due 2029.
The aggregate principal amount will be $1 bill and a concurrent private offering of senior secured notes, due 2029 and, collectively with the senior guaranteed notes, for an aggregate principal amount of $1 bill.
RCI intends to use the proceeds from the sale of the two sets of notes, together with cash on hand, to redeem all its outstanding 9.125% priority guaranteed notes, due 2023 and 10.875% senior secured notes, also due 2023, respectively, concurrently with the respective closing of the two notes offerings, including the payment of fees and expenses in connection with the redemptions.
The senior guaranteed notes will be guaranteed on a senior unsecured basis by RCI Holdings, which owns 100% of the equity interests of some of the company’s wholly-owned vessel-owning subsidiaries.
Meanwhile, the senior secured notes will be guaranteed by Celebrity Cruises, Celebrity Cruises Holdings and also by some of the company’s wholly-owned vessel owning subsidiaries.
These notes and the related guarantees will be secured by 26 of the company’s vessels and its material intellectual property in an amount not to exceed permitted capacity under the company’s existing debt.
The closing of each offering is not contingent upon the closing of the other, RCI explained.