Royal Caribbean Group announces completion of $1.5 billion offering of senior unsecured notes

Rhea-AI Summary

Royal Caribbean Group (NYSE:RCL) has successfully completed a registered public offering of $1.5 billion in senior unsecured notes with a 5.375% interest rate, maturing on January 15, 2036. The offering marks RCL's relaunch into the investment grade market.

The company plans to use the proceeds to finance the upcoming delivery of Celebrity Xcel instead of using its existing export credit agency facility. The remaining funds will be allocated to redeem, refinance, or repurchase existing debt, including outstanding revolving credit facilities. The offering was managed by BofA Securities, Goldman Sachs, and Morgan Stanley.

Positive

• Return to investment grade market status indicates improved financial strength
• Successful placement of $1.5B offering demonstrates strong market confidence
• Strategic refinancing provides financial flexibility for fleet expansion
• Lower cost financing through 5.375% notes versus existing credit facilities

Negative

• Additional long-term debt commitment through 2036
• Increased interest expense with new 5.375% notes
• Exposure to interest rate and refinancing risks for remaining debt

Insights

Debt Capital Markets Specialist

Royal Caribbean raises $1.5B in investment-grade bonds to finance new ship delivery and refinance debt, signaling financial strength.

Royal Caribbean has successfully completed a $1.5 billion offering of senior unsecured notes with a 5.375% interest rate maturing in 2036. This represents a significant financial development as it marks the company's relaunch into the investment-grade market, reflecting improved credit quality since the pandemic severely impacted the cruise industry.

The proceeds serve dual strategic purposes: primarily financing the upcoming delivery of Celebrity Xcel without utilizing the previously arranged export credit agency facility, and addressing existing debt obligations. This refinancing strategy demonstrates management's focus on optimizing the company's capital structure.

The 5.375% coupon rate is particularly noteworthy in the current interest rate environment. For a 12-year maturity bond, this pricing indicates relatively favorable market perception of Royal Caribbean's credit risk. The involvement of three major financial institutions as lead book-runners—BofA Securities, Goldman Sachs, and Morgan Stanley—further validates the offering's credibility.

CFO Naftali Holtz's statement about this being a "testament to the strength of both the Company and its balance sheet" is substantiated by the company's ability to access the investment-grade market. This debt issuance provides Royal Caribbean with enhanced financial flexibility while extending its debt maturity profile, which helps mitigate refinancing risks. The company's return to investment-grade status suggests significant recovery from pandemic-related financial challenges and positions it more favorably for future capital needs as it continues fleet expansion.

MIAMI, Oct. 1, 2025 /PRNewswire/ -- Royal Caribbean Cruises Ltd. (NYSE: RCL) (the "Company") today announced that it has completed its registered public offering of $1.5 billion aggregate principal amount of 5.375% senior unsecured notes due 2036 (the "Notes"). The Notes will mature on January 15, 2036, unless earlier redeemed or repurchased.

The Company intends to use the net proceeds from the sale of the Notes to finance the upcoming delivery of Celebrity Xcel in lieu of utilizing its existing committed export credit agency facility and, with the remaining net proceeds, to redeem, refinance or otherwise repurchase existing indebtedness, including amounts outstanding under its revolving credit facilities.

BofA Securities, Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC acted as lead book-running managers for the offering.

The Notes were offered and sold pursuant to an automatic shelf registration statement (including a prospectus) that was filed by the Company with the Securities and Exchange Commission on February 29, 2024, and became effective upon filing.

"As our relaunch into the investment grade market, this transaction serves as a testament to the strength of both the Company and its balance sheet." said Naftali Holtz, Chief Financial Officer of Royal Caribbean Group. "This offering demonstrates our financial flexibility by allowing us to more optimally finance the upcoming delivery of Celebrity Xcel and address certain upcoming debt maturities."

This press release shall not constitute an offer to sell or a solicitation of an offer to buy the Notes or any other securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Special Note Regarding Forward-Looking Statements

Certain statements in this press release relating to, among other things, the offering and sale of the Notes constitute forward-looking statements under the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited, to: statements regarding the intended use of proceeds. Words such as "anticipate," "believe," "considering," "could," "driving," "estimate," "expect," "goal," "intend," "may," "plan," "project," "seek," "should," "will," "would" and similar expressions are intended to help identify forward-looking statements. Forward-looking statements reflect management's current expectations, but they are based on judgments and are inherently uncertain. Furthermore, they are subject to risks, uncertainties and other factors that could cause the Company's actual results, performance or achievements to differ materially from the future results, performance or achievements expressed or implied in those forward-looking statements. Examples of these risks, uncertainties and other factors include, but are not limited to, the following: the impact of the economic and geopolitical environment on key aspects of the Company's business, such as the demand for cruises, passenger spending, and operating costs; changes in operating costs; the unavailability or cost of air service;  incidents or adverse publicity concerning the Company's ships, port facilities, land destinations and/or passengers or the cruise vacation industry in general; the effects of weather, climate events and/or natural disasters on the Company's business; risks related to the Company's sustainability activities; the impact of issues at shipyards, including ship delivery delays, and ship construction cost increases; shipyard unavailability; unavailability of ports of call; vacation industry competition and increase in industry capacity; inability to manage the Company's cost and allocate our financial resources efficiently; the uncertainties of conducting business globally and expanding into new markets and new ventures, including potential acquisitions; issues with travel advisers that sell and market the Company's cruises; reliance on third-party service providers; potential unavailability of insurance coverage; disease outbreaks and increased concern about the risk of illness on the Company's ships or when travelling to or from the Company's ships, which could cause a decrease in demand, guest cancellations, and ship redeployments; the risks and costs related to cyber security attacks, data breaches, protecting the Company's systems and maintaining data integrity and security; uncertainties of a foreign legal system as the Company is not incorporated in the United States; the Company's ability to obtain sufficient financing or capital to fund its capital expenditures, operations, debt repayments and other financing needs; the Company's expectation and ability to pay a cash dividend on its common stock in the future; changes to the Company's dividend policy; changes in U.S. or other countries' foreign travel policy; impact of new or changing legislation and regulations (including environmental regulations) or governmental orders on the Company's business; fluctuations in foreign currency exchange rates, fuel prices and interest rates; further impairments of the Company's goodwill, long-lived assets, equity investments and notes receivable; an inability to source crew or provisions and supplies from certain places; the Company's ability to recruit, develop and retain high quality personnel; and pending or threatened litigation, investigations and enforcement actions.

Forward-looking statements should not be relied upon as predictions of actual results. Undue reliance should not be placed on the forward-looking statements in this release, which are based on information available to the Company on the date hereof. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About Royal Caribbean Group

Royal Caribbean Group (NYSE: RCL) is a vacation industry leader with a global fleet of 68 ships across its five brands traveling to all seven continents. With a mission to deliver the best vacations responsibly, Royal Caribbean Group serves millions of guests each year through its portfolio of best-in-class brands, including Royal Caribbean, Celebrity Cruises, and Silversea; and an expanding portfolio of land-based vacation experiences through Perfect Day at CocoCay and Royal Beach Club collection. The Company also owns a 50% joint venture interest in TUI Cruises, which operates partner brands Mein Shiff and Hapag-Lloyd Cruises. With a rich history of innovating, Royal Caribbean Group continually delivers exciting new products and guest experiences that help shape the future of leisure travel.

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SOURCE Royal Caribbean Group

FAQ

What is the size and interest rate of Royal Caribbean's (RCL) new bond offering?

Royal Caribbean's offering consists of $1.5 billion in senior unsecured notes with a 5.375% interest rate, maturing in January 2036.

How will Royal Caribbean (RCL) use the proceeds from its $1.5B bond offering?

The proceeds will be used to finance the delivery of Celebrity Xcel and to redeem, refinance, or repurchase existing debt, including amounts outstanding under revolving credit facilities.

Who were the lead managers for Royal Caribbean's (RCL) 2025 bond offering?

The offering was led by BofA Securities, Goldman Sachs & Co. LLC, and Morgan Stanley & Co. LLC as lead book-running managers.

When do Royal Caribbean's (RCL) new senior unsecured notes mature?

The senior unsecured notes will mature on January 15, 2036, unless earlier redeemed or repurchased.

What does the bond offering indicate about Royal Caribbean's (RCL) financial status?

The offering marks RCL's relaunch into the investment grade market, demonstrating the company's improved financial strength and balance sheet position.