Royal Caribbean Group Announces Upsizing And Pricing Of $1.25B Offering Of Senior Unsecured Notes To Refinance Its Senior Notes Due 2027
Portfolio Pulse from Benzinga Newsdesk
Royal Caribbean Cruises Ltd. (RCL) has upsized and priced a $1.25 billion offering of 6.25% senior unsecured notes due 2032, intended to refinance its 11.625% senior notes due 2027. The offering was increased from an unspecified amount and is expected to close on March 7, 2024. The proceeds, along with other funds, will be used to redeem the existing senior notes.
February 22, 2024 | 10:14 pm
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Royal Caribbean Cruises Ltd. is refinancing its high-interest senior notes due 2027 with a lower interest offering due 2032, aiming to improve its financial flexibility and reduce interest expenses.
Refinancing higher interest debt with lower interest offerings generally has a positive impact on a company's financial health by reducing interest expenses and improving cash flow. This move by RCL indicates proactive financial management and could be viewed positively by investors, potentially leading to a short-term uptick in RCL's stock price.
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