Royal Caribbean Group announces completion of offering of $1.25 billion senior unsecured notes due 2033 and $1.25 billion senior unsecured notes due 2038
Rhea-AI Summary
Royal Caribbean Group (NYSE: RCL) completed a registered offering of $1.25 billion 4.750% senior unsecured notes due May 15, 2033 and $1.25 billion 5.250% senior unsecured notes due February 27, 2038, raising $2.5 billion.
The company intends to use net proceeds to refinance senior notes maturing in 2026 and to repay existing indebtedness, which may include term loans, aiming to extend maturities and reduce near-term refinancing needs.
Positive
- $2.5B raised via two senior unsecured note tranches
- Extended maturities to 2033 and 2038, reducing near-term refinancing needs
- Notes priced at competitive long-term rates of 4.750% and 5.250%, signaling investor confidence
Negative
- Adds $2.5B of long-term senior unsecured debt and related interest obligations
- Fixed coupon obligations of 4.750% and 5.250% increase future cash interest requirements
Key Figures
Market Reality Check
Peers on Argus
RCL gained 1.9% with key travel peers also up: ABNB +3.61%, CCL +1.55%, BKNG +1.69%, CUK +1.69%, TCOM +0.18%, suggesting a supportive sector backdrop.
Previous Offering Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 12 | Debt offering launch | Neutral | -0.3% | Announced registered senior unsecured notes offering for 2026 debt refinancing. |
| Oct 01 | Debt deal completed | Positive | +1.3% | Completed $1.5B senior notes at 5.375% to fund ship delivery and refinance debt. |
| Sep 22 | Debt pricing set | Positive | +0.4% | Priced $1.5B senior notes due 2036 at 5.375% to support newbuild financing. |
| Sep 22 | Debt offering launch | Neutral | +0.2% | Proposed senior notes to fund Celebrity Xcel delivery and refinance facilities. |
Recent note offerings have typically produced modest, mostly positive single-day reactions, indicating offerings have been absorbed without major dislocations.
Over the past year, Royal Caribbean has repeatedly tapped the unsecured note market, with offerings in September–October 2025 and February 2026 used to refinance debt and fund fleet investments. Price reactions around these events have been small, between about -0.28% and +1.29%, implying investors largely view these transactions as routine balance sheet management. Today’s completion of the 2033 and 2038 notes continues that pattern of issuing long-dated debt for refinancing rather than incremental expansion.
Historical Comparison
In the last 4 debt offering announcements, RCL’s average one-day move was 0.4%. Today’s 1.9% reaction to the completion of the new notes is somewhat stronger than past norms.
The company has used multiple senior unsecured note offerings since 2025 to extend maturities, fund newbuilds, and refinance existing debt, with the latest 2033 and 2038 tranches continuing this liability-management trend.
Market Pulse Summary
This announcement details completion of two long-dated senior unsecured note tranches totaling $2.5 billion, with coupons of 4.750% and 5.250% maturing in 2033 and 2038. Proceeds are earmarked to refinance senior notes due in 2026 and repay other indebtedness, extending the company’s maturity profile. Historically, similar offerings have produced modest single-day stock reactions. Investors may focus on how these transactions affect leverage, interest expense, and flexibility against the broader risk factors highlighted in the forward-looking statements.
Key Terms
senior unsecured notes financial
registered public offering financial
forward-looking statements regulatory
AI-generated analysis. Not financial advice.
The Company intends to use the net proceeds from the sale of the Notes to refinance its senior notes maturing in 2026 and any remaining net proceeds to repay existing indebtedness, which may include term loans.
J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC and PNC Capital Markets 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.
"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."
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 terms of the offering of the Notes and 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 or 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 capital allocation strategies; 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
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 is a leading global vacation company spanning cruise, exclusive destinations, and land-based vacation experiences. The company operates 69 ships sailing to more than 1,000 destinations across all seven continents through its three wholly owned brands -Royal Caribbean, Celebrity Cruises, and Silversea - and a
The Group is expanding its portfolio of private destinations from three to eight by 2028 through its Perfect Day and Royal Beach Club collections, and the company will enter river cruising in 2027 with Celebrity River Cruises. Powered by innovative brands, advanced technology, and an industry-leading loyalty program, the company has built a connected vacation ecosystem, turning the vacation of a lifetime into a lifetime of vacations.
Named to the Fortune World's Most Admired Companies 2026 and Forbes' 2026 Best American Companies lists, Royal Caribbean Group is guided by its mission to deliver the best vacations responsibly.
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SOURCE Royal Caribbean Group
FAQ
What did RCL announce on February 27, 2026 about new debt issuances?
How will the February 2026 RCL note offering affect near-term refinancing needs?
What interest rates and maturities did RCL secure in the February 27, 2026 offering?
How much total capital did RCL raise with the 2026 senior notes offering (RCL)?
Who led the book-running for RCL's February 27, 2026 debt offering?
