Royal Caribbean Group announced on Monday that it has commenced a private offering of senior convertible notes to be issued by the company due 2025 in an aggregate principal amount of up to $900 million.
In addition, the company intends to grant the initial purchasers an option to purchase up to an additional $135 million principal amount of Convertible Notes.
“The purpose of the offering is to replace some of the existing near-term maturities of convertible bonds with new longer-term convertible bonds in a manner which is non-dilutive to shareholders as described,” said Naftali Holtz, Chief Financial Officer of Royal Caribbean Group.
The cruise company said it intends to use the proceeds from the sale of the Convertible Notes to repurchase a portion of its 2.875% convertible senior notes due November 15, 2023, and 4.25% convertible senior notes due June 15, 2023, through open-market purchases, privately negotiated transactions, tender offers or otherwise. The Company intends to retire any Existing Convertible Notes so purchased.
“The proposed transaction proactively addresses the near-term maturity of our existing convertible notes,” said Holtz. “With the proceeds of this offering, our intention is to opportunistically repurchase the existing convertible notes, and we have the option to settle the remaining notes in cash to address our convertible debt maturities in a manner that is net neutral to our outstanding shares and share equivalents.”
The Convertible Notes will be convertible at the holder’s option in certain circumstances. Upon conversion, the company may satisfy its conversion obligation by paying or delivering, at its election, as applicable, cash, shares of its common stock or a combination of cash and shares of its common stock.
Royal Caribbeans Anthem of the Seas photo credit Spacejunkie2
As the winter approaches, the Royal Caribbean Group brands are expanding their restart plans, adding destinations and new homeports.
In November, eight more ships are resuming service for the corporation, bringing its brands back to Los Angeles, Puerto Rico, Antarctica, the Middle East and more.
Here are the latest plans, brand by brand:
Royal Caribbean International Status: 14 ships currently in service; three more set to follow by Dec. 1 Ships: Allure of the Seas, Anthem of the Seas, Freedom of the Seas, Harmony of the Seas, Independence of the Seas, Jewel of the Seas, Liberty of the Seas, Mariner of the Seas, Oasis of the Seas, Odyssey of the Seas, Quantum of the Seas, Serenade of the Seas, Spectrum of the Seas and Symphony of the Seas currently in service; Adventure of the Seas, Explorer of the Seas and Navigator of the Seas set to follow in November Regions: Asia, Caribbean, Bahamas, Mediterranean, United Kingdom and West Coast
With 14 cruise ships in service, Royal Caribbean International currently has the most capacity back in the market.
Sailing in North America, Europe and Asia, the brand is set to reactivate three additional vessels by Dec. 1, relaunching service in additional destinations.
Debuting on the West Coast, the Navigator of the Seas is welcoming guests back in Los Angeles on Nov. 19.
A few weeks earlier, on Nov. 7, the Explorer of the Seas is resuming service in San Juan, bringing the brand back to its Puerto Rico homeport.
Currently, in a European shipyard, the Adventure of the Seas is also returning to revenue operation soon. On Nov. 29, the ship is set to return to Galveston for a series of four- and five-night Western Caribbean cruises.
While the balance of the Royal Caribbean fleet is poised to return to guest operations until May 2022, the brand has also resumed service from Hong Kong recently, launching a program of short cruises to nowhere from the Asian port.
Celebrity Cruises Status:Eight ships currently in service; two more set to follow by Dec. 1 Ships: Celebrity Apex, Celebrity Edge, Celebrity Equinox, Celebrity Flora, Celebrity Millennium, Celebrity Silhouette, Celebrity Summit and Celebrity Xpedition currently in service; Celebrity Constellation and Celebrity Reflection set to follow in November Regions: Mediterranean, Caribbean, Bahamas, United Kingdom, Galapagos, West Coast and Panama Canal
In November, Celebrity Cruises is launching a new phase of its restart program. After several months with eight vessels sailing revenue cruises, the brand is adding two more ships into active service by Dec. 1.
Marking Celebrity’s return to Tampa, the Celebrity Constellation is set to welcome guests back on Nov. 7.
A day earlier, the Celebrity Reflection is resuming service after a 20-month operational pause, offering a series of Caribbean cruises from Port Everglades.
In October, Celebrity also returned to the West Coast and the Panama Canal with the Celebrity Millennium. After a season in Alaska, the vessel is offering a couple of California cruises from San Diego before crossing the Panama Canal on its way to the Caribbean.
TUI Cruises Status: Six ships currently in service Ships: Mein Schiff 1, Mein Schiff 2, Mein Schiff 3, Mein Schiff 4, Mein Schiff 5 and Mein Schiff 6 Regions: Mediterranean, Northern Europe and Emirates
Based in Germany, TUI Cruises currently has six cruise ships sailing with guests in Northern Europe and the Mediterranean.
Preparing for the winter season, the brand is planning to expand its restart to new destinations over the next months.
While a season in Southeast Asia was recently cancelled, cruises to the Caribbean, the Canary Islands and the Emirates are on the plans through the end of the year.
Silversea Cruises Status: Four ships currently in service; three more sets to follow by Dec. 1 Ships: Silver Moon, Silver Origin, Silver Shadow and Silver Spirit currently in service; Silver Cloud, Silver Explorer and Silver Whisper set to follow in November Region: Galapagos, Mediterranean, Western Europe, Atlantic, Caribbean and Antarctica
After months of negotiation, Silversea Cruises is ready to relaunch its expedition sailings in Antarctica. With the Silver Cloud and the Silver Explorer, the brand is returning to the seventh continent in November, offering departures from Chile.
On Nov. 17, the Silver Whisper is also returning to revenue operations, offering Caribbean cruises from San Juan and Fort Lauderdale.
Currently, four Silversea ships are sailing with passengers, cruising in the Mediterranean, the Galapagos, Western Europe and more.
The luxury brand welcomed its passengers back in June with the inaugural cruises of two newbuilds, the Silver Moon and the Silver Origin.
Hapag-Lloyd Cruises First sailing: Five ships in service Ships: Europa 2, Europa, Hanseatic Nature, Hanseatic Inspiration and Hanseatic Spirit Region: Mediterranean, Northern Europe and Atlantic
In November Hapag-Lloyd Cruises is completing yet another month with the entire five-ship fleet in service.
While, during the summer, the German brand sailed in Northern Europe and the Mediterranean, new cruises are now being offered, including itineraries to the Atlantic Archipelagos and the Emirates.
With its cruise restart plan picking up pace, the Royal Caribbean Group will achieve a major milestone in August.
By the end of the month, more than half of the group’s 61-ship fleet have will be back in commercial service.
The 34 vessels sailing around the world mean 56% per cent of the company’s fleet is now operating with passengers in several destinations.
This fall, more ships, homeports and itineraries are set to return. Here are the latest plans, brand by brand:
Royal Caribbean International Status: 13 ships in service; three more to follow through October Ships: Quantum of the Seas, Adventure of the Seas, Freedom of the Seas, Anthem of the Seas, Jewel of the Seas, Serenade of the Seas, Odyssey of the Seas, Allure of the Seas, Ovation of the Seas, Symphony of the Seas, Independence of the Seas, Harmony of the Seas and Mariner of the Seas in service; Oasis of the Seas, Liberty of the Seas and Spectrum of the Seas set to follow Regions: Asia, Caribbean, Bahamas, Mediterranean, United Kingdom and Alaska
More than half of the Royal Caribbean International 25-ship fleet has now returned to commercial service.
With 13 active vessels, the brand is currently sailing to several destinations around the world, including the Caribbean, the Mediterranean, Asia and Alaska.
In September and October three additional ships are set to resume service, including the Oasis of the Seas.
Celebrity Cruises Status: Seven ships in service; two more to follow in September and October Ships: Celebrity Apex, Celebrity Edge, Celebrity Silhouette, Celebrity Flora, Celebrity Millennium, Celebrity Xpedition and Celebrity Equinox in service; Celebrity Summit and Celebrity Xploration set to follow Regions: Mediterranean, Caribbean, Bahamas, United Kingdom and the Galapagos
In North America, the Celebrity Summit recently completed a series of Caribbean sailings from St. Maarten.
The vessel is now poised to return to the United States, offering short cruises to Mexico and the Bahamas.
The Celebrity Edge, the Celebrity Equinox and the Celebrity Millennium are also in service in Europe, while other ships are in operation in Europe and the Galapagos.
TUI Cruises Status: Six ships in service Ships: Mein Schiff 1, Mein Schiff 2, Mein Schiff 3, Mein Schiff 4, Mein Schiff 5 and Mein Schiff 6 Regions: Mediterranean, Northern Europe, Greece and Italy
Silversea Cruises Status: Three ships in service; two more to follow Ships: Silver Origin, Silver Moon and Silver Muse in service; Silver Shadow and Silver Spirit set to follow Region: Galapagos, Mediterranean, Alaska, Northern Europe and British Islands
After completing its first season in Iceland, the brand is now ready to add new itineraries in the Mediterranean, British Islands and Northern Europe.
Hapag-Lloyd Cruises Status: Five ships in service Ships: Europa 2, Europa, Hanseatic Nature, Hanseatic Inspiration and Hanseatic Spirit Region: the Mediterranean and Northern Europe
Germany-based Hapag-Lloyd Cruises currently has all of its five-ship fleet in commercial operations. The luxury brand is presently offering several different itineraries in the Baltic, the Norwegian Fjords and the Mediterranean.
The new Hanseatic Spirit was the most recent addition to the active fleet. Recently delivered, the expedition vessel departed Hamburg on its inaugural cruise on August 26.
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