Royal Caribbean Group closed its offering of $1.15b in 6% convertible senior notes due 2025 including the exercise in full of the initial purchasers’ option to buy additional notes.
The company used the proceeds of this upsized offering to buy back$800m of its 4.25% convertible senior notes due June 15, 2023, and $350m of its 2.875% convertible senior notes due Nov. 15, 2023, in privately negotiated transactions. These repurchased notes were retired.
The convertible notes were offered only to qualified institutional buyers outside the US.
Initial conversion rate approximates$/share
The initial conversion rate per $1,000 principal amount of these notes is 19.9577 shares of common, which is equivalent to an initial conversion price of approximately $50.11 per share, subject to adjustment in certain circumstances.
Before May15, 2025, the notes will be convertible at the option of holders during certain periods, upon satisfaction of certain conditions. After that, the notes will be convertible at any time until the close of business on the second scheduled trading day immediately preceding the notes’ maturity date.
Notes may be settled in shares, cash or a combination
The notes may be settled in shares, cash or a combination of cash and shares, at Royal Caribbean Group’s election.
