Royal Caribbean Proposes Refinancing on High-Interest Debt

Royal Caribbean Proposes Refinancing on High-Interest Debt

Independence of the Seas in Southampton, Photo credit Spacejunkie2 (Flickr)

Royal Caribbean Cruises Toady announced that it has commenced a private offering of senior guaranteed notes due 2029 for an aggregate principal amount of $1.0 billion and a concurrent private offering of senior secured notes due 2029, for an aggregate principal amount of $1.0 billion.

The Company intends to use the proceeds from the sale of the Senior Guaranteed Notes and the Senior Secured Notes, together with cash on hand, to redeem all its outstanding 9.125% Priority Guaranteed Notes due 2023 and 10.875% Senior Secured Notes due 2023, respectively, concurrently with the respective closing of the Senior Guaranteed Notes and Senior Secured Notes offerings (including to pay fees and expenses in connection with such redemptions).

The Senior Guaranteed Notes will be guaranteed on a senior unsecured basis by RCI Holdings LLC, which owns 100% of the equity interests of certain of the Company's wholly-owned vessel-owning subsidiaries.

The Senior Secured Notes will be guaranteed by Celebrity Cruises Inc., Celebrity Cruises Holdings Inc. and certain of the Company's wholly-owned vessel-owning subsidiaries. The Senior Secured Notes and the related guarantees will be secured by 26 of the Company's vessels and material intellectual property of the Company in an amount not to exceed permitted capacity under the Company's existing indebtedness.

The closing of each offering is not contingent upon the closing of the other offering.

CMV declines to comment on reports over financing talks

CMV declines to comment on reports over financing talks

Cruise & Maritime Voyages has declined to comment on reports that it is in talks with investor VGO Capital Management over financing to allow it to navigate the shutdown of the cruise sector.

Sky News reported that the talks were critical to a package being agreed, and a CMV spokesman said: “Financing discussions involving several parties are still ongoing and we are not prepared to make any further comment at this time.”

Last month, CMV confirmed it was in talks with a number of financial institutions and banks to secure additional financing “to improve its liquidity position until sailing will resume again” and said it was confident a deal would be reached.

At that point, Sky said talks with private equity firm Novalpina Capital and existing creditors were halted following a decision by Barclays not to offer a £25 million loan under the Coronavirus Large Business Interruption Loan Scheme.