Royal Caribbean Offers Senior Notes Worth $700M

Global cruise vacation company Royal Caribbean Cruises Ltd. (NYSE: RCL) has announced a proposal to offer senior unsecured notes due 2027 of $700 million aggregate principal amount in a private offering. Shares of the company gained 1.9% on Tuesday to close at $82.38 per share.

Royal Caribbean seeks to use the proceeds from this offering to repay principal payments on debt maturing in 2022. Also, pending such uses, the company may temporarily use the proceeds to repay borrowings under its revolving credit facilities or other borrowings.

Royal Caribbean Earnings

The company is expected to report a loss of $3.90 for the fourth quarter of 2021. Royal Caribbean’s earnings lagged estimates in the past two quarters of 2021, and given the concerns about COVID-19 restrictions to stop the spread of the coronavirus in the past few months, the company is likely to miss estimates again in the fourth quarter.

Overall, the consensus among analysts is a Hold rating based on 4 Holds and 1 Sell.  

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