Tag Archives: Royal Caribbean

New Royal Caribbean Galveston Cruise Terminal to Be Zero-Energy Facility

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Royal Caribbean Group’s new Galveston terminal, which is opening on Nov. 9, will be the first cruise terminal to generate 100% of its needed energy through on-site solar panels. According to a press statement, this makes the terminal, which will be used by the company’s Royal Caribbean International brand, the first LEED Zero Energy facility in the world. 

We are focused on innovating across all aspects of our company, especially in our work to advance sustainability in the communities we visit,” said Jason Liberty, president and CEO, of Royal Caribbean Group. “We deeply value both the oceans we sail and the communities we visit and operate in, and the modern design and development features at our terminal in Galveston will work in service of both.”

The new cruise terminal at the Port of Galveston will be the first in Texas to achieve LEED Gold certification, an industry-leading certification expected to be received within the first two quarters of 2023.

The Galveston terminal marks the cruise company’s fourth LEED-certified facility and its first Gold certified. The previous projects include Terminal A at PortMiami; the Springfield, Oregon campus; and the Innovation Lab at Royal Caribbean Group’s corporate headquarters in Miami.

The $125 million, 161,334-square-foot Galveston Cruise Terminal significantly expands the company’s presence in the port, increasing the cruise line’s ability to accommodate up to 630,000 guests annually. The opening of the terminal will mark the first time Galveston welcomes Royal Caribbean International’s signature Oasis Class, the world’s largest cruise ship, with the arrival of Allure of the Seas and the first time the company is bringing its frictionless arrival and departure process to Texas.

Royal Caribbean Proposes Refinancing on High-Interest Debt

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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.

Royal Caribbean Group Raising $900 Million to Refinance Debt

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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.