Royal Caribbean completes $1.5 billion notes offering to fund vessel delivery

Royal Caribbean Cruises Ltd. (NYSE:RCL), the $86 billion market cap cruise operator, announced Wednesday it has completed an offering of $1.5 billion in aggregate principal amount of 5.375% senior notes due 2036. According to InvestingPro data, the company maintains a perfect Piotroski Score of 9, indicating strong financial performance. The company received net proceeds of approximately $1.484 billion after deducting fees, commissions and expenses, according to a statement filed with the Securities and Exchange Commission.

The notes were issued under an existing indenture with The Bank of New York Mellon Trust Company, N.A. as trustee, and are registered under the Securities Act of 1933. The offering was conducted pursuant to an underwriting agreement dated September 22, 2025, with BofA Securities, Inc., Goldman Sachs & Co. LLC, and Morgan Stanley & Co. LLC acting as representatives of the underwriters.

Royal Caribbean stated it intends to use the net proceeds to finance the upcoming delivery of the vessel Celebrity Xcel, instead of drawing on its existing committed export credit agency facility. Any remaining funds are designated to redeem, refinance, or repurchase existing indebtedness, including amounts outstanding under its revolving credit facilities. The company currently operates with a debt-to-equity ratio of 2.15, which InvestingPro analysts consider a moderate level of leverage.

Interest on the notes will accrue from Wednesday at a rate of 5.375% per annum, payable semi-annually in arrears on January 15 and July 15 of each year, beginning January 15, 2026. The notes are scheduled to mature on January 15, 2036, unless earlier redeemed or repurchased.

Additional information on the notes and related agreements is available in the company’s prospectus supplement dated September 22, 2025, filed with the SEC on September 24, 2025.

This article is based on a statement from a Securities and Exchange Commission filing.

In other recent news, Royal Caribbean Cruises Ltd. completed a $1.5 billion public offering of senior unsecured notes with a 5.375% interest rate due in 2036. The company plans to use the proceeds to finance the delivery of the Celebrity Xcel and manage existing debt. In another development, Royal Caribbean secured shipbuilding rights at the Meyer Turku shipyard in Finland through 2036. This agreement includes an order for a fifth Icon Class ship, scheduled for delivery in 2028, with an option for additional vessels. Fitch Ratings recently upgraded Royal Caribbean’s Long-Term Issuer Default Rating to ’BBB’ from ’BBB-’, citing stronger-than-expected leverage metrics and debt reduction. The company’s senior unsecured bonds were also upgraded to ’BBB’. These developments reflect Royal Caribbean’s strategic efforts to strengthen its financial position and expand its fleet.

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